The future of Airbus’ next-generation passenger aircraft appears in jeopardy this week after the World Trade Organisation (WTO) effectively banned European governments, including the UK, from providing launch aid for the A350.
The WTO’s ruling brings to an end the first round of a six-year legal battle between Airbus and its US rival Boeing, with both sides claiming the other had received illegal state aid.
While Boeing is arguing that Airbus should repay $4bn in government loans for its A380 ‘superjumbo’, Airbus is waiting for the ruling on its claim that Boeing received prohibited loans from the US government for its 787 Dreamliner.
The WTO is expected to announce its preliminary ruling on the Boeing case next month.
Since the WTO stated that loans from the UK, France and Germany to Airbus for the A380 were illegal, the US is threatening possible trade sanctions if European governments provide similar aid for the launch of the A350.
Airbus says it will appeal against the ruling. The WTO also found that several other Airbus models benefited from subsidies.
By Linsey McNeill
