Airbus parent company calls for talks on WTO dispute

The head of Airbus’ parent company says the European jet maker did nothing wrong in a trade dispute with the US over government subsidies,and called for a negotiated settlement with archrival Boeing. In an interview published on Wednesday,EADS N V chief Louis Gallois also defended the system of government launch aid for Airbus,saying it was more transparent than “opaque subsidies” that he said Boeing receives.

Gallois spoke to French business daily La Tribune in his first interview since a preliminary World Trade Organisation ruling last week that European loans for Airbus amounted to illegal subsidies. “Airbus does not plead guilty,and will produce arguments in its defense,” he was quoted as saying. A separate WTO panel is hearing a European Union counter-complaint against the US that claims the Pentagon and NASA are indirectly subsidising Boeing. A ruling is expected in about six months.

Gallois said EADS “has always favored a new agreement” to end the dispute,but added that if no accord can be reached,both disputes will carry on until a final decision is reached,expected in 2012 or 2013. Last week’s ruling has cast a shadow over Airbus and Boeing’s competition for a $35 billion contract for an aerial refueling tanker for the US Air Force.