For the first time, an american program – the 777X – is convinced of illegal subsidies.
“History !” Airbus did not hide his satisfaction after the verdict, Monday 28 of November, by the world trade Organization (WTO). And there is what. For the first time, in the long litigation between the european Union (EU) to the United States on the public subsidies granted to Airbus and Boeing, the WTO pin-specifically a program of Boeing. In this case, the 777X, the modernized version of the airplane star on the market for long-haul.
The amount of state aid deemed illegal has not been encrypted by the WTO. But the EU, which filed a complaint in 2014, are estimated to be $ 5.7 billion dollars
Better yet, the WTO determines that certain tax benefits, extended beyond 2013 by the State of Washington, for the development of the 777X, are indeed “illegal” and “banned.” The amount of state aid deemed illegal has not been encrypted by the WTO. But the EU, which filed a complaint in 2014, are estimated to be $ 5.7 billion out of a total of 8.7 billion of public subsidies, local various. “These subsidies are illegal because they are directly related to maintaining activities of Boeing in Washington State, where are located its two largest plants. There has been blackmail to employment,” says one in the entourage of Airbus.
In November 2013, the american giant launches the 777X. In the process, it invites more than a dozen u.s. States to participate in a selection procedure until mid-December. Boeing seeks ostensibly a new assembly site for the 777X following the rejection by the SPEEA, the union of workers and technicians of the aeronautics, a new social contract. Boeing has pledged to produce the new aircraft in the State of Washington in exchange for a reduction in benefits. In 2009, Boeing had already decided to “relocate” the second assembly plant for the 787 Dreamliner in North Carolina, in order to enjoy a social legislation more flexible than in the north-west of the United States. Still smarting, the State of Washington had decided to extend the regime of tax benefits for Boeing. With success, since the 777X will be assembled in Everett. “The illegal aid who have received a single 777X represent a damage of $ 50 billion for the european aviation industry”, has been calculated to Airbus.
On seven categories of aid challenged, only one of which has been pinned : the tax rate reductions of the tax known as the ” Business & Occupancy “, applied to the future sales of the 777X
The WTO, however, has not entirely given satisfaction to the EU. On the seven categories of aid challenged, only one of which has been pinned: the tax rate reductions of the tax known as the “Business & Occupancy”, applied to the future sales of the 777X. “This tax benefit will represent a $ 50 million sales per year, from the time when Boeing will begin to rake in the revenue with the 777X, that is to say, from the first deliveries expected in 2020″, nuance-t-one on the american side. These tax benefits are also not exclusive: all the aeronautical companies installed in this State bordered by the Pacific can apply to the case of French Zodiac. The United States, as well as the EU, should very soon make an appeal of the decision of the WTO. This should give a new verdict in 2018-2019, according to a new study conducted by the panel of three judges from “non-aeronautical” (including Chile, South Africa and New Zealand) designated by the Or ganization.
This is the umpteenth twist of this dispute, in transatlantic, which began in 2004, with the first complaint american. The two sides accuse each other of supporting illegal aviation industry worth tens of billions of dollars. The WTO refers to back-to-back at the discretion of its findings, initiating calls and new reports.
While the two giants of the aerospace world compete in front of a “tribunal” that has no power to impose sanctions, China continues, with public funds, its objective: to dethrone the duopoly Airbus-Boeing. For its part, Canada has stepped in last summer to save the CSeries, a rival of the A 320 and 737, developed by Bombardier. Without that nobody can find fault with…
After you have met the four committees of the company, Airbus Group held on Tuesday morning in Toulouse, a european group committee. On the menu, the restructuring plan Gemini (Gemini), as a result of the merger between the holding head and the Airbus, which represents 75 % of the activity of the group. The fusion of structures, legal and corporate, to July 1, 2017, made to appear of overstaffing, especially in the “white collar” of the two entities. Management must detail these deletions of posts that the CFE-CGC Airbus evaluates to 1 357 out of a total of 10,000 affected. Several sites in France (Toulouse, Suresnes, Marignane) and in Germany (Ottobrunn) are concerned. “Social treatment” of the plan will be discussed from January 2017. The unions fear layoffs (our editions of 23 November) at a time when Airbus Helicopters provides, in addition, to remove 583 positions in 2017-2018 and where the defense is penalized by the vagaries of the A400M programme.