Prospects for a speedy settlement in the tit-for-tat transatlantic clash over aircraft subsidies appeared dim yesterday as a case involving Boeing Co resumed at the World Trade Organisation (WTO).

The EU and the US are pursuing competing complaints with the WTO over tens of billions of euros and dollars in state support provided to Boeing and Airbus, rivals who both posted record results in 2007.

While both sides could be found in violation of international trade rules if the WTO cases unfold to the verdict stage, industry and government sources said no meaningful negotiations were underway to resolve the issues.

As the WTO panel gathered to hear a second set of arguments in the European complaint against Boeing, Rainer Ohler, Airbus's senior vice-president for public affairs and communications, accused officials of the US group of having imposed "unrealistic" preconditions on talks.

"We have suggested from the beginning that a balanced, negotiated settlement would be the best solution for all sides as, in a case of this complexity and scope, any delay in inevitable discussions benefits only the lawyers," Mr Ohler said.

Boeing, in turn, said its European Commission counterparts had offered no momentum towards negotiation.

"Thus far we have seen no evidence of an EC interest to resolve this dispute," Boeing lawyer Robert Novick said.

The US and European aircraft makers battle in a market worth about $80 billion a year. Both recorded strong orders and deliveries last year, though they may suffer this year if the global economy falters.

It remains unclear when the twin WTO dispute panels will release their initial rulings.

The panel in the case against Airbus, in which the US alleges the company got grants and loans at unfairly favourable rates in the form of "launch aid", is expected to release a descriptive section of its report to parties in May.