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Is Airbus's position with regard to the long running dispute over subsidies reasonable?
Wiki User
∙ 14y ago
From a pure free-market economy perspective, it looks unreasonable for several European governments to finance the development of airliners which go on to compete with products self-financed by Boeing, who have to incorporate the development costs in their overheads, making their products more expensive and therefore less competitive.
But it's much more complex than that. Boeing are not just in the civil airliner business and receive huge revenues for their military products and military development projects, revenues that are directly provided by the US Government and which are effectively protected from competition due to US reluctance to source defence equipment from overseas companies.
You could argue that both companies are being directly supported by government money, but only one of the companies is being honest about the support.
The WTO will decide.
Wiki User
∙ 14y ago
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