December 9, 2004
AIRBUSTED:
The Airbus Showdown: The Bush administration says Airbus has received $15 billion in 'launch' subsidies for its jets. Whatever the figure, enough is now enough (Robert J. Samuelson, 12/13/04, Newsweek)
The United States and Europe are edging toward their biggest trade dispute ever—and the United States shouldn't blink. The dispute involves competition between Boeing and Airbus, which has toppled Boeing as the world's largest producer of commercial jets. In 2004, Airbus will deliver about 315 jets compared with Boeing's 285. Some industry analysts expect Airbus to maintain its lead over Boeing until at least 2008. Despite this success, the European Union still supports government subsidies for Airbus. The subsidies must stop, and if the Europeans can't be convinced, Congress should protect Boeing from predatory competition.Created in 1970, Airbus reflects Europe's ambitions and pride. The French, Germans and British didn't want to cede the global aircraft market to the United States. Given the huge investments needed to develop planes, Airbus couldn't have survived its early years without subsidies. The Bush administration says Airbus has received $15 billion in "launch" subsidies for its planes. Total subsidies are hard to determine because they took many forms. Whatever the figure, enough is now enough. [...]
It's true that many of Boeing's problems are self-inflicted. [...]
But there's also another truth: Europe has an industrial policy to put Boeing out of the commercial-jet business.
If Mr. Samuelson says it's a legitimate fight over fair trade that's good enough for us. Posted by Orrin Judd at December 9, 2004 6:14 AM
Actually, we do not have be as draconian as Samuelson suggests. All we need to do is tell Airbus that if they EVER want to bid on US military contracts, no further subsidies. They can make their own choice.
Posted by: jim hamlen at December 9, 2004 10:49 AMWe are at war with Europe culturally and economically. We should make sure Boeing scores big wins among our true allies and in our own country.
Posted by: JimGooding at December 9, 2004 12:42 PMIf the Airbus were not subsidized no one would buy it. It is an uncomfortable and dangerous rattletrap of a plane, which I call the 'flying breadtruck.'
Tariffs should be imposed on European goods across the board equal to 10 times the amount of the Airbus subsidy.
Posted by: Bart at December 9, 2004 4:19 PM