WASHINGTON - U.S. Senators Sam Brownback (R-KS) and Pat Roberts (R-KS), along with Congressman Todd Tiahrt (R-Wichita) today commented on the World Trade Organization’s final ruling on Airbus and the illegal subsidies the company received from the European Union. The WTO ruled that the European Union illegally subsidized the development of the entire family of Airbus aircraft (A300 through A380), including the A330 which is the platform competing for next United States Air Force tanker. All three Members of Congress expressed their appreciation to the USTR for convincing the WTO to set the record straight that launch aid is an illegal subsidy.

“Airbus is not competing fairly in the marketplace and should not be able to underbid on defense contracts by having European governments illegally subsidize their airplane design and production,” stated Brownback. “This unfair playing field has had a devastating effect on the U.S. aviation industry and we should not allow the governments of Europe to distort the global aircraft marketplace, whether it is the Air Force tanker contract or future commercial aircraft.”

“The WTO‘s final ruling confirms what we have known all along that EU governments provided illegal subsidies, most egregiously in the form of launch aid, creating an unfair advantage,” Senator Roberts said. “These illegal subsidies were found to significantly distort the global commercial aviation marketplace and benefit Airbus at the expense of the Boeing Corporation. The decision also upheld that the airframe on which the Northrop-Grumman/EADS Air Force tanker bid was based received unfair subsidies. The WTO’s decision is long overdue. The Kansas Aerospace community should not have to compete on an uneven playing field.”

Tiahrt stated, "We finally have a concrete ruling to justify what we have been saying for years. The illegal subsidies given by European governments have caused great damage to the U.S. aviation industry and cannot continue. If Airbus decides to bid for the KC-X tanker contract, this gives the Obama administration the opportunity to show its commitment to American workers by accounting for the illegal dealings of European governments. In the midst of an economic recession, we should be doing everything possible to keep these high-quality jobs here on American soil. More so, giving a vital national security component like the aerial refueling tanker to a foreign entity is reckless and extremely dangerous."

The final ruling confirms that the Airbus A330, which is the airplane that was presented as a replacement for the KC-135 refueling tanker, is considered an illegally subsidized aircraft.

For more than 30 years, the E.U. governments have pursued a targeted strategy to gain global leadership in the market for large commercial aircraft through massive government subsidies to Airbus. These subsidies include launch aid to develop new aircraft—such as no- or low-interest government loans repaid only if a program succeeds—debt forgiveness, equity infusion, and infrastructure and research & development support. 

Airbus has received more than $178 billion in commercial value provided in the form of launch aid from the governments of France, Germany, Britain and Spain with the understanding that full repayment is required only in the event that Airbus airplanes are commercially successful. 

-30-