Boeing hits out at Airbus move to seek state financing

US aerospace giant Boeing accused rival Airbus of flouting world trade rules by trying to win government financing for its new A350 aircraft. "We're very disappointed that Airbus again is choosing to use governmental money to develop their plane when...

US aerospace giant Boeing accused rival Airbus of flouting world trade rules by trying to win government financing for its new A350 aircraft.

"We're very disappointed that Airbus again is choosing to use governmental money to develop their plane when they have the money do it with their own resources, which is what a company should do," said Robert Novick, Boeing's legal advisor.

Mr Novick said it showed "disregard" for the World Trade Organisation as it prepares to issue a ruling on whether such financing violates international rules of commerce.

France has offered up to €1.4 billion and Germany €1.1 billion to launch the A350 extra-wide body airliner but no firm agreement was reached with other partner countries on a package..

The US and the EU have had a longstanding disagreement over state aid for the aviation industry.

Washington lodged a complaint with the WTO in October 2004, alleging that financing from several European governments for Airbus was a form of disguised subsidy.

The EU had responded by filing a counter-complaint against the US, aruging that Boeing received state subsidies.

Scheduled for delivery in mid-2013, the A350 long-haul aircraft is being developed at a cost of €11 billion and is aimed at rivalling Boeing's 787.

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