A top Boeing Co. official said last week he was optimistic the European Union would agree to end government aid to develop new aircraft, which has helped its chief rival Airbus grab more than half of the civil aircraft market.
"I'm hopeful that both (the US and the EU) governments in mid-September will get together and... define a path forward to get launch aid out," Ted Austell, vice-president of trade policy for Boeing, said in an interview.
Earlier this month, President Bush threatened to bring a World Trade Organisation case against EU subsidies for Airbus if Brussels does not agree to end them voluntarily. The two sides are scheduled to meet next month on the issue.
In less than a decade, Boeing's share of the market for large commercial aircraft has dropped from 80 per cent to less than half, as Airbus' share has shot to just over 50 per cent.
EU officials have said they are willing to discuss their government loan program to help Airbus develop new aircraft if the US is willing to discuss the indirect subsidies Boeing receives through government-financed research and development programs for military and space projects.
Airbus is co-owned by European aerospace company EADS and Britain's BAE Systems.
"The amount of money (European) governments provide for research and development to EADS and BAE Systems is every bit comparable to what Boeing's military R&D is," Mr Austell said.
However, unlike Airbus, Boeing cannot turn to the government for loans to develop a new civilian aircraft. It must instead look for funds in the private marketplace.
Boeing estimates that Airbus has received about $15 billion in government launch aid since 1967 and calculates that has translated into about a $40 billion subsidy benefit because of generous repayment terms of the loans.
Airbus' contention that the loans are not subsidies because they are repaid is simply untrue, he said.
Boeing is not asking Airbus to give up any government loans that it has already received - including about $3.7 billion for the massive 555-seat A380 slated to debut in 2006.
"Our message is simple. No more launch aid," Mr Austell said.