US reacts angrily to Airbus plan for state loans

WASHINGTON (AFP) - US President George W. Bush's adminstration reacted angrily to Airbus' plan to seek state financing to help develop a rival to Boeing's fuel-efficient 7E7 Dreamliner.
"We warned that this would happen," said US Trade Representative (USTR) office spokeswoman Neena Moorjani.
"The administration will continue to insist on a level playing field for American companies and workers."
Airbus chief executive Noel Forgeard told The Financial Times he would seek up to one billion euros (1.24 billion dollars) in loans from European states to develop the rival A350.
A company spokesman confirmed that Forgeard had said he would ask for one-third of the development costs, expected to be between two and three billion dollars.
He added that the program was "absolutely financeable" by Airbus if the loans did not come through.
The United States last week quit a 12-year-old aviation accord, which had allowed Europe to give loans for up to one-third of the costs of developing new aircraft, and filed a World Trade Organization complaint.
In response, the Europeans launched a tit-for-tat complaint against indirect US subsidies for Boeing Co.
"Forgeard's admission that Airbus will seek one billion dollars in launch aid for the A350 jet confirms the necessity of bringing this issue to a head with a view to getting Airbus to break its addiction to taxpayer money," Moorjani said.
Airbus planned to ask for the loans even though it could finance the project itself, she said.
"Airbus is all grown up and ... it does not need more subsidies," the US trade spokeswoman said. "It is time to level the playing field one way or another, preferably through a new agreement."
US Trade Representative Robert Zoellick said last week the United States had tried in vain to convince Europe to halt billions of dollars in "unfair subsidies" to Airbus.
Europe, in turn, accuses the US government of providing about 23 billion dollars in indirect subsidies to Boeing since 1992 through NASA, the Department of Defence, the Department of Commerce and other agencies.