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with state aid. In an average year it repays about $500m.
The WTO’s ruling on Europe’s complaint should come within the next six months. It would not be
surprising if both complaints were upheld, at least in part. Both parties say they are willing to negotiate a
new deal limiting subsidies and making those that remain more transparent. That would send out a
message to other countries (Russia and China) wanting to muscle in to the large commercial aircraft
market. But both sides also want to see who comes out of the WTO process worst before starting talks.
Unfortunately, there will be plenty of opportunities to escalate hostilities in the meantime. In the next few
weeks European governments are expected to agree to give some €3.5 billion ($5 billion) in launch aid for
the A350. Boeing describes it as a “provocative” move, but an Airbus spokesman says the aid is not in
doubt and that Europe will not be “intimidated”. Another bone of contention is the battle between Boeing
and Airbus, with its partner Northrop Grumman, to supply America’s air force with its next fuel tanker—a
contract won by Airbus last year which is being fought over again after Boeing protested. The grounds for
further complaint, and thus the opportunities for inflicting mutual damage, are immense.
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