US to file WTO case against Airbus subsidies

The United States will today file a complaint at the World Trade Organization over what it called "unfair" European Union subsidies…

The United States will today file a complaint at the World Trade Organization over what it called "unfair" European Union subsidies to aircraft manufacturer Airbus.

"Since its creation thirty-five years ago, some Europeans have justified subsidies to Airbus as necessary to support an 'infant' industry. If that rationalisation were ever valid, its time has long passed. Airbus now sells more large civil aircraft than Boeing," US trade representative Mr Robert Zoellick said in a statement.

Airbus began as a consortium of French, German, Spanish and British companies and is now co-owned by European aerospace company EADS and Britain's BAE Systems.

The European Union, which held failed talks with Washington on the dispute, said earlier it would hit back with a case of its own, accusing Boeing of receiving illegal state aid.