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Boeing still prefers amicable settlement with Airbus
(Agencies)
Updated: 2005-06-06 08:56

US planemaker Boeing would still prefer to reach an amicable settlement with its European rival Airbus in the dispute over aircraft subsidies rather than having the matter settled by the World Trade Organisation (WTO), a senior Boeing official told a French daily.

Boeing Senior Vice President Thomas Pickering told the Monday edition of French economic daily La Tribune that an accord between the two sides is preferable and the manufacturer hopes that serious discussions between the United States and the European Union will continue in parallel with WTO procedures.

Combo of two computer generated images handed out by Airbus of an Airbus A350-800 (top) and by Boeing of the new Boeing 787 jet (below).[AFP]

He said a global accord covering both direct and indirect aid should be reached.

On Tuesday Washington and Brussels raised the stakes in the transatlantic dispute over state aid for aircraft manufacturers by taking it to the WTO.

However, the United States said at the time it remained prepared to continue negotiations.

Washington and Brussels both claim the other's aircraft manufacturer is benefitting from improper subsidies, giving it a competitive advantage.

Both sides had tried to avoid a full-blown dispute at the WTO but failed to meet an April 11 target for an amicable solution.

The dispute over aid to Airbus and Boeing was inflamed recently when Airbus requested British government aid for its A350 long-haul plane designed to compete with Boeing's proposed 787 Dreamliner.

The United States believes financial aid given to Airbus to launch new aircraft is illegal under WTO rules, while the Europeans accuse Washington of subsidizing Boeing through military contracts.

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