Boeing executives express concern over European loans to Airbus Industrie - Brief Article

Airline Industry Information, Jan 25, 2000

AIRLINE INDUSTRY INFORMATION-(C)1997-2000 M2 COMMUNICATIONS LTD

Executives from Boeing Co have apparently urged the Clinton administration to challenge the European government`s awarding of low-cost loans to the company`s European aircraft manufacturing rival, Airbus Industrie.

Attempts in 1998 to take up the matter with the European Commission were apparently rebuffed and the matter has since lain unchallenged. But Boeing is apparently becoming more concerned that the governments of Britain, France and Germany are preparing to make another set of loans of around USD3.5bn to help Airbus Industrie develop its new 650-seat A-3XX jumbo jet aircraft.

Boeing is also concerned that the US government has not yet addressed alleged violations of lending limits outlined in 1994 WTO agreements and has suggested that France and Germany have waived the repayment of debts by certain Airbus Industrie partner companies, which contravenes WTO rules.

US officials are currently looking at filing a complaint with the WTO and European aerospace officials have said that such a complaint would most likely be countered with suggestions that the US government has violated limits on indirect support for Boeing.

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