Airbus and Boeing enter crucial phase in subsidies dispute
The court battle regarding the accusation of illegal government subsidies for Airbus and Boeing is set to enter a crucial phase, as the World Trade Organization (WTO) is scheduled to make the final decision in the upcoming months.
The legal dispute between two plane manufacturing giants started back in 2004, with US claiming that Airbus had received unfair European government loans for the development of next generation aircraft, such as the Airbus A380. The European counterparts counter-accused Boeing of receiving illegal federal aid as well.
In separate rulings, the WTO found that both companies have enjoyed benefits of billions in unfair subsidies.
Currently, the case is whether each of the companies has complied with the previous rulings to withdraw the aid and undo its effects. The plane manufacturers accused each other of ignoring thousands of findings and now ask the WTO to draw up sanctions reaching up to $10bn for the European and $12bn for the US side.
The WTO is expected to make the ruling regarding the European side's compliance in the upcoming weeks, while a similar decision regarding the US counterparts should be announced in the beginning of 2017.
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