“I applaud the efforts of the U.S. Trade Representative to file a formal request for consultations with the World Trade Organization (WTO) against the European Union (EU) and Airbus. The U.S., through government-to-government talks, has tried to resolve disputes arising from the 1992 U.S. – EU Agreement on Trade in Large Civil Aircraft. This 1992 agreement does not reflect current market realities and has outlived its usefulness. It is time that Airbus compete with Boeing on a fair playing field. For years, the subsidies that Airbus has received from the EU have allowed them to develop and market a full range of aircraft without incurring full commercial risk, which means it does not need a new aircraft program to be profitable before moving to design and produce the next new aircraft. The subsidies that Airbus has received include low or no-interest government loans that only need to be repaid if a program succeeds. This is in stark contrast to the market realities that Boeing faces each and every day.

Airbus claims that potential tax reductions from Washington state that Boeing will receive for the 7E7 are equivalent to the aid that Airbus has received. The potential tax reductions are in no way equivalent to the over $6 billion in upfront development and production support that Airbus has received for the A380. Boeing will not receive any tax benefits under the Washington state program unless and until it invests its own funds to develop the 7E7 and begins delivering it to customers. This is in stark contrast to the business practices at Airbus. The risk is entirely on Boeing’s shoulders and if, for example, the 7E7 were unsuccessful, Boeing will receive nothing. If Airbus, however, has an unsuccessful aircraft, it does not have to repay the money.

Airbus is a mature company with a full family of airplanes that has surpassed Boeing in orders in recent years and has an order backlog that significantly exceeds Boeing’s. Government subsidies to Airbus are no longer justified and should cease now.  I plan to work with all parties involved as this process unfolds to protect jobs in Washington State and throughout the nation.”