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Isn't the pretence that Airbus subsidy will be reduced?
by Metatone (metatone [a|t] gmail (dot) com) on Sat Jan 17th, 2009 at 04:22:13 AM EST
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The only support they have gotten is 'launch aid', which I believe they will ask again. The latest on that:

The Associated Press: Airbus A350 development on track

Bregier gave few details on how Airbus plans to finance the euro10 billion ($13.26 billion) A350 program. He said the development costs have so far been funded by Airbus and some of its suppliers in a risk-sharing program.

"We are not in a hurry to find other ways despite the difficulties we know our customers will face in 2009," he said.

Airbus may also seek government aid to create a "level playing field" with Boeing's 787, which he said "got a lot of subsidies."

by nanne (zwaerdenmaecker@gmail.com) on Sat Jan 17th, 2009 at 04:36:35 AM EST
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Is that what you meant by this:

nanne:

Which is all fine but doesn't explain why we should be subsidising jobs in China and Russia, plus the bootstrapping of the Chinese and Russian airspace industry, at a time when even Boeing has gotten the memo that global sourcing has gone too far.
by Metatone (metatone [a|t] gmail (dot) com) on Sat Jan 17th, 2009 at 05:41:31 AM EST
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If we are to give aid for this, it shouldn't go to outsourcing outside of the EU. Launch aid is otherwise a good idea. It consists of the state taking over risk, e.g. the state provides financing which is only repayable if the project is successful. So far Airbus projects have delivered, so they're paying back the aid.

Otherwise the entire pretense that EADS is a 'normal' company is no longer relevant in a time when governments are bailing out much more normal companies throughout the economy. Sure, there needs to be some restriction on government interventions. But in this case it is clear that Airbus' strategy has some elements that are not in its own long-term interest.

by nanne (zwaerdenmaecker@gmail.com) on Sat Jan 17th, 2009 at 06:16:38 AM EST
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