WTO Rules European Subsidies to Airbus Illegal | Aviation International News

Regulations and Government

WTO Rules European Subsidies to Airbus Illegal

Airbus claims “tiny tweaks” needed for full compliance while Boeing declares victory in 12-year-old dispute

By Gregory Polek • Senior Editor

September 22, 2016

The World Trade Organization (WTO) issued a ruling on Thursday against the European Union (EU) and several members states confirming certain U.S. claims of improper subsidies to Airbus in the latest chapter of a 12-year-old saga over government aid for civil aircraft. The principal subsidies covered by the ruling include launch aid for the development of virtually all Airbus's airliner projects and certain equity infusions by France, Germany, Spain and the UK. The ruling also covers certain infrastructure measures provided to Airbus, namely, the lease of land at the Mühlenberger Loch industrial site in Hamburg, the right to exclusive use of an extended runway at Bremen Airport, regional grants by the German authorities in Nordenham, and Spanish government grants and regional grants by Andalucia and Castilla-La Mancha in Sevilla, La Rinconada, Toledo, Puerto Santa Maria and Puerto Real.

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