Subscribe to our free, weekly email newsletter!



Airbus must compete now on a level playing field

By Patrick Burnson, Executive Editor
April 03, 2011

One must wonder why The European Commission would welcome last week’s World Trade Organization’s final case ruling on subsidies, as it clearly favors Boeing over Airbus. Still, a proud face was put up by the EU members, who maintain that Boeing has received subsidies in the past and continues to receive them today.

All too true, Boeing admits, but the scale of those federal and state gifts for NASA-related programs pales in comparison. Airbus received more than $20 billion in impermissible funding versus $2.7 billion for Boeing.

As I reported in Supply Chain Management Review, Boeing executives said that measuring this decision with that of last June reveals a market distorted by Airbus’ practices, with illegal launch aid being the “key discriminator.”

Added Boeing: “The WTO ruling on launch aid goes to the heart of the Airbus business model, which now must change. In contrast, there are no comparable findings or consequences to the U.S. or Boeing from today’s decision, as the WTO has now fully and finally rejected most of the EU’s claims.”

The EU’s countersuit victory is pyrrhic at best, as it means Airbus will now have to scramble in an effort to recover market share without massive government aid.

For related stories click here.

 

About the Author

image
Patrick Burnson
Executive Editor

Patrick Burnson is executive editor for Logistics Management and Supply Chain Management Review magazines and web sites. Patrick is a widely-published writer and editor who has spent most of his career covering international trade, global logistics, and supply chain management. He lives and works in San Francisco, providing readers with a Pacific Rim perspective on industry trends and forecasts. You can reach him directly at .(JavaScript must be enabled to view this email address).


Subscribe to Logistics Management magazine

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your
entire logistics operation.
Start your FREE subscription today!

Recent Entries

NRF's Jonathan Gold explains that the past year was replete with disruptions, slowdowns and partial shutdown, which can no longer be the norm, saying ports and dockworkers must adapt to ensure they provide shippers with the predictability and stability they need.

Last month, I gave a presentation to a group of senior transportation and supply chain executives. It was entitled “Predictable Surprises,” because it addressed how transportation and supply chain professionals can eliminate unpleasant surprises by looking at and evaluating issues in the transportation industry, and projecting how those issues will affect their companies.

The Port of Los Angeles (POLA) and the Port of Long Beach (POLB) said this week that they have formally established working groups, which they said will aim to seek new supply chain efficiencies, and focus on various aspects of port operations, including peak operations and terminal optimization in an effort to augment the San Pedro Bay port complex.

A month ago, the Shippers Conditions Index (SCI) from freight transportation consultancy FTR indicated that shippers might be traveling on a rocky road in the coming months. And one month later it appears those concerns appear to have been confirmed.

The American Association of Port Authorities (AAPA) had nothing but praise for the Senate passage over the past weekend of the Bipartisan Congressional Trade Priorities and Accountability Act of 2015 (TPA-2015).

Article Topics

Blogs · Air Cargo · Air Freight · Global Trade · All topics

Comments

Post a comment
Commenting is not available in this channel entry.


© Copyright 2015 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA