Washington, D.C. - Today U.S. Rep. Rick Larsen (WA-02) urged U.S. officials to take whatever steps necessary to end European Union (EU) subsidies to Airbus.

At the hearing Larsen said, “In order for American workers to succeed in the aerospace industry, and in all industries, they must be allowed to compete on a fair and level playing field. When the playing field is neither fair nor level, good paying jobs in the U.S. are lost.”

Larsen argued that EU’s Launch Aid for Airbus must end. Launch Aid consists of no-interest or low-interest government loans for up to one-third of the cost of building a new Airbus aircraft. Repayment of many of these loans are dependent upon sales of Airbus’ aircraft. If Airbus fails to sell the targeted amount of planes, they do not pay back that portion of the loan.

“Airbus has an incredibly unfair advantage over U.S. companies like Boeing,” Larsen stated. “Airbus does not have to bear the whole risk that Boeing does when it builds new aircraft. Up to one-third of the financial risk involved in building a new product lies with EU countries, not with Airbus.”

Larsen thanked the USTR and Administration for their efforts so far and for ending the U.S.- EU 1992 Agreement on Large Civil Aircraft and requesting World Trade Organization consultations on a new agreement. Larsen argued that the 1992 agreement, which allowed 33% of Airbus’ Aircraft development costs to be funded through Launch Aid, is clearly no longer necessary.

“If there ever was a time that Airbus needed Launch Aid to help it get off the ground, that time has long since passed,” Larsen said. “Airbus is clearly a mature company that does not need risk-free government loans in order to be competitive.”

Witnesses at the hearing included Joseph Bogosian, Deputy Assistant Secretary for Manufacturing at the U.S. Department of Commerce; and Ambassador Peter Allgeier, Deputy U.S. Trade Representative. 

Larsen serves on the Transportation and Infrastructure Committee and its Aviation Subcommittee. His district includes the Everett Boeing plant.