Talks between the European Union and the USA on aircraft subsidies appeared to have stalled last week over the side issue of support for the new Airbus and Boeing long-range twinjets, the A350 and 787.

Late last week, Airbus was confident of the EU securing a deal that would separate support for the two new projects from wider talks on ending state aid. However, it is understood the USA considers its 787 to be a response to the A380 ultra-large aircraft, and is therefore rejecting the idea of Airbus receiving support for its new A330 derivative.

The EU, meanwhile, wants all subsidies for the 787, including those given by the Japanese government, included in any calculations.

Talks broke down on 19 March, before the self-imposed 90-day deadline for an agreement on the issue. EU trade commissioner Peter Mandelson reportedly abruptly ended a telephone conference with Robert Zoellick, the deputy US secretary of state, who continues to represent the USA in the talks.


Source: Flight International