US and EU Go At It Over Airline Subsidies

The United States and Europe are once again disputing subsidies for aircraft competitors Boeing and Airbus, accusing one another of trying to stall negotiation talks.

Last year both approached the World Trade Organisation (WTO) with litigation hoping to eliminate subsidies on the aviation giants.

Washington D.C. wants Europe to stop providing loans known as "launch aid" to Airbus. The reasons for this seem clear in Boeing headquarters, Washington state. European subsidies for Airbus's new A350 model would enable to aircraft to challenge Boeing's 787, its new 250 seat long-range jetliner.

European owned Airbus argues that Boeing benefits from tax breaks in Washington State, Japanese government support and U.S. government contracts for military and space research.

European Trade Commissioner Peter Mandelson denied U.S. accusations that the EU were avoiding talks to settle the dispute and insisted Washington was responsible for any deterrent to negotiations.

The current negotiation deadline is April 11.

Source: http://www.dailyfinancenews.com/