Release Date: January 23, 2007
An article in Flight International on allegations that subsidies to Airbus are driving U.S. rivals Lockheed and McDonnell Douglas out of commercial aviation quotes David Pritchard, research associate in the Canada-U.S. Trade Center in the Department of Geography. "The complex web of global subsidies which transcends national borders achieves risk reduction, market penetration, containment of launch costs and the use of foreign risk-sharing partners as a conduit to foreign government funding. My view is that both sides in this dispute have sinned. They would be much better to fight it out between themselves, because the ramifications of this dispute run throughout the whole global aerospace supply chain. Many elements within the industry benefit from some form of subsidy and this could open a can or worms. It is one of those down alley whispering things, but the industry would not be happy with either a U.S. WTO or a counter-case led by Europe." Go to article.