All this comes against the backdrop of international trade disputes

By Staff
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Google Oneindia News

On Board the A380, May 8 (UNI) The United States and the European Union have accused each other of accepting government subsidies while developing the Boeing 787 Dreamliner and the Airbus A380.

The United States, acting at the behest of Boeing executives, has filed a case against the European Union before the World Trade Organisation (WTO), charging that the governments of EU members Britain, Germany, France and Spain illegally subsidised Airbus to the tune of billions of euros so it can build the costly A380.

Washington charges this is a violation of WTO rules and has asked a panel of WTO judges to rule on the matter.

Not to be outdone, the EU has accused the United States of lavishing lucrative defence and aerospace contracts on Boeing by the federal government alongwith incentives offered to Boeing by the states of Kansas and Washington which the EU says constitute de facto market-distorting subsidies.

Chicago's Boeing Co, the largest commercial aircraft maker in the United States, has put its money on building a medium-sized aircraft called the B787 Dreamliner, which is made for long-haul flights but will carry from 200 to 300 people and be able to serve smaller airports as well as massive hubs.

The Dreamliner is scheduled to come into service in 2008. Made of light composite materials and touted as highly fuel-efficient, Boeing is pitting the 787's sleekness against the A380's size.

Early orders for the B787 have been strong, prompting Airbus to hedge its bets on the A380 and start planning for a mid-sized aircraft called the A350 to compete with the B787.

All this acrimony has clouded the debut of the super jumbo, which is still months away from flying a commercial route that is not a staged media event.

Airbus has meanwhile bagged firm orders and commitments for 166 aircraft for 15 customers.

UNI

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