The US has said it may increase tariffs after the EU lost its case at the WTO. The US claimed that loans made by the EU to Airbus for the development of the A380 and other aircraft represented an unfair advantage.
Image: Eric Cabanis/AFP/Getty Images
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The World Trade Organization (WTO) on Monday dismissed European Union suggestions that the bloc no longer subsidizes Airbus, the Europe-based multinational aerospace corporation.
As a response to the WTO's conclusion, the United States said it could impose tariffs on a broader range of European goods, as it seeks to assert its authority in the long-lasting dispute between the world's two principle constructors of airplanes — Airbus and Boeing.
In October of this year, the US imposed a record $7.5 billion (€6.8 billion) in levies on annual EU imports as part of its case against Airbus. The US placed partial tariffs on most jets from Airbus, as well as products such as cheese, olives and whiskey.
In Monday's ruling, a three-person panel rejected EU claims that a recent decision by Airbus to stop producing the slow-selling A380 meant the airliner could no longer be seen as a threat to Boeing, the American multinational corporation whose competing 747 faces falling demand.
The European Commission is considering appealing as it believes the WTO's findings contained serious legal errors.
Airbus turns 50 with little fanfare
European aviation giant Airbus marked its 50th birthday in 2023 with a private flypast for employees at its Toulouse base. The fully intergrated company now has a market capitalization of €66 billion ($75 billion).
Image: picture-alliance/dpa/F. Charmeux
Euro a boost to the company
Airbus has its origin in a consortium formed by plane makers in France, Germany and Spain in 1969. Creating a fully integrated company, though, was only possible because of the euro introduction in 1999, which helped to create a consolidated balance sheet for the company, CFO Harald Wilhelm tells the Wall Street Journal.
Image: picture-alliance/dpa/N. Seliverstova
Airbus the job creator
"We employ 130,000 highly skilled people globally and are a powerful engine of productivity for Europe," says Airbus CEO Guillaume Faury. The company makes half of the world's large commercial aircraft and also runs a helicopter, defense and space business.
Image: dapd
Meeting medium-haul requirements
In 1984, Airbus launched the A320. The single-aisle medium-haul passenger plane set out to challenge US rival Boeing, which had clearly dominated the largest segment in the aviation market. Nowadays, an A320 takes off or touches down every 2.5 seconds, which testifies to its enormous success.
Image: Reuters/P. Hanna
Upgraded jet even better
The A320 prepared the ground for the much more fuel-efficient A320neo. It has become the backbone of the company and has gained even greater importance after Boeing's competing 737 MAX planes were grounded following two deadly crashes.
Image: Reuters/Regis Duvignau
Complete failure?
This is not to say that Airbus production has always run smoothly. At the beginning of this year, the firm announced that it would scrap the making of its A380 passenger giant by 2021. It explained that the number of orders was not enough to turn the A380 into a profitable undertaking.
Image: em company/H. Goussé
In the crosshairs
While the company as a whole is in good shape, it's currently facing investigations in France, the UK and the US after disclosing transaction irregularities back in 2016, AFP points out. US President Donald Trump has threatened the EU with new tariffs, should it not end its subsidies to Airbus.
It was the US that first filed a case with the WTO in 2006 claiming that Airbus, which is jointly owned by Germany, France, Spain and Britain's BAE Systems, had received $22 billion (€19.4 billion) in illegal subsidies. US officials estimated that the subsidies had resulted in an economic benefit of more than $200 billion.
The EU retaliated with a countercase, alleging that Boeing had received $23 billion in "trade-distorting" subsidies in the US mainly for its research and development projects.
