Airbus Statement Regarding Today's WTO Panel Report in the US Case Against the EU

(March 23, 2010) -- Airbus learned tonight from Geneva that the WTO Panel report confirms the following:

1. 70 percent of the US claims were rejected.

2. The European reimbursable loan mechanism is confirmed to be a legal and compliant instrument of partnership between government and industry.

3. The Panel refused the US request for remedies as legally inappropriate.

4. Past loans were found by the Panel to contain a certain element of subsidy, a finding we will study.

5. Possible future funding for the A350 is not affected in any way by today's report. US attempts to include the A350 were specifically rejected.

6. Neither European RLI nor any other measure has caused "material injury" to any US interest. This means that the Panel has rejected the US claims that European measure caused job losses or lost profits in the US aircraft industry. Boeing claims of lost US jobs have now been judged and found to be false.

7. Research grants have been condemned as structurally non-compliant, with important implications for the coming report on US subsidies to Boeing.

These results are in stark contrast to Boeing's enthusiastic expectations announced only last night in a statement by the company. Airbus, the EU and the Member States will closely analyse today's ruling in advance of a possible review by the WTO appellate body.

Airbus expects the WTO to issue the report on Boeing subsidies in June. Boeing's recent WTO enthusiasm is unlikely to survive WTO confirmation that the B787 is the most highly subsidized aircraft program in the history of aviation.

Airbus expects the WTO conflict to drag along for at least a few more years. As in all other trade conflicts, resolution will finally only be found in trans-Atlantic negotiations. Boeing's repeated rejection of European offers for negotiation over years and again last night usurp the proper role of the US Government and contradict the US trans-Atlantic partnership with European nations.

Source : Airbus, an EADS N.V. company (Paris: EAD.PA)