A Feud Between Airbus and Boeing Has Given Neither Side a Clear Advantage

The Airbus vs. Boeing feud is really an argument over aircraft subsidies. Boeing has benefited from improper subsidies in the US and Airbus has used more blatant and aggressive types of subsidies in Europe. The US complained to the World Trade Organization that European countries had given Airbus more than $20 billion in questionable aid. Boeing claimed that Airbus used the loans to steal sales from Boeing. But Airbus counter sued, saying that Boeing received at least $5 billion in federal research contracts and subsidies. However, the lawsuits have not stopped the companies in moving forward with development of new planes. The WTO has no enforcement mechanism to resolve this dispute of subsidies so talks between the US and European officials will have to settle the issue. Efforts to resolve the trade dispute could also be complicated by other subsidized competitors all over the world.