Home › Forums › Commercial Aviation › Boeing-Airbus Subsidies Row Escalates (20/21Mar2005) › Reply To: Boeing-Airbus Subsidies Row Escalates (20/21Mar2005)
Howdy,
As an American I was going to remark that the US federal government provides no subsidies to Boeing and that the state of Washington provided minimal subsidies. While the US government doesn’t, I guess the fact is that the state of Washington does. See the following URL:
http://seattlepi.nwsource.com/business/197093_subsidy28.html .
Apparently the state of Washington provided $ 3.2 billion (over 20 years) worth of “incentives” for Boeing to produce the 7E7 in Everett, WA. While this is less than what the EU give Airbus, it is substantial. In US state politics, this is aimed at keeping Boeing from moving jobs to other states. Most states, except mine (Massachusetts), do this; Massachusetts seems to do pretty well without supporting its local industry, which is mostly high-tech, bio-technology, mutual funds, medical, and education. You see this a lot in automobile production in the US and Canada by the provinces and states.
The EU certainly should take the state of Washington to court to eliminate these unfair subsidies. The US probably should do the same with the EU, France, Germany, and the UK. Both companies should compete in a level playing field. Since there is no competition except between the two with aircraft larger than the A318, there is no threat at the moment of production moving to another country. I would imagine that Brazil provides aid to Embraer in its production of the 170/175 & 190/195 development; but I do not know this as a fact (just an assumption).
Both companies are now mature and do not need state aid to compete against each other.
Just my opinon!
Bkonner