EADS Offers to Give Up Government Loans for Airbus to Avoid WTO Dispute

Strategic Insights -

The European Aeronautic Defense and Space Company (EADS) has offered to eliminate all government soft loans for Airbus, its majority-owned subsidiary, in an effort to settle a dispute with the United States and avoid costly litigation at the World Trade Organisation. This move comes as Airbus is set to announce 100 commitments from airlines for its new A350 wide-body jet at the Paris air show. EADS, which owns 80% of Airbus, wants to create a level playing field and has asked the EU to support technological innovation in the same way as the US supports Boeing.

Key Takeaways:

  • EADS has offered to give up all government soft loans for Airbus to help settle a dispute with the United States and avoid costly litigation at the World Trade Organisation.
  • The offer comes ahead of the Paris air show, where Airbus is set to announce 100 commitments from airlines for the A350.
  • EADS wants to create a level playing field and has asked the EU to support technological innovation in the same way as the US supports Boeing.
  • The EU trade commissioner, Peter Mandelson, was offered a deal by EADS to reduce euros 1bn of "launch aid" from Britain, France, Germany, and Spain by a third.
  • EADS has urged both the US and EU to fully liberalise their defence markets.
  • Airbus has won just 10 order commitments for the A350 compared to 266 for Boeing's 787.
  • The official launch of the A350 has been delayed until the autumn due to Airbus producing more planes this year and next.

Statistics:

  • 100 - number of commitments from airlines for the A350 that Airbus is set to announce at the Paris air show.
  • 80% - EADS's stake in Airbus.
  • euros 1bn - the amount of "launch aid" from Britain, France, Germany, and Spain that EADS offered to reduce.
  • 20% - BAE Systems' stake in Airbus.
  • 10 - number of order commitments for the A350 won by Airbus compared to 266 for Boeing's 787.
  • 266 - number of order commitments for the 787 won by Boeing.
  • 320 - number of planes delivered by Airbus last year.
  • 360 - number of planes expected to be sold by Airbus this year.

Sources:

  • [No sources provided in the original text]

Source:

www.guardian.co.uk/airlines