Bangkok--Feb 4--eTurbo news
The Boeing Co. lost its lead as the world's top producer of commercial aircraft because of its own mistakes and is now trying to overcome them by manipulating international trade rules, a top Airbus official said Wednesday.
"Boeing is looking for a competitive advantage through international trade sanctions," T. Allan McArtor, chairman of Airbus North American Holdings Inc., said during a luncheon speech sponsored by the National Aeronautic Association.
McArtor said Boeing has invested only one-third as much as Airbus in the research and development of new planes, spent $9 billion buying back stock rather than launching new aircraft, refocused its attention on military sales and diversified into areas unrelated to aerospace.
"It has certainly had a negative impact on Boeing commercial sales," he said.
After his speech, McArtor met with U.S. Sen. Patty Murray, D-Wash., the most outspoken critic of Airbus on Capitol Hill. Murray said McArtor requested the meeting.
"I will listen to anyone," Murray said in an interview after the meeting. "But we have serious disagreements over a trade dispute. Airbus speaks with two voices, one from its lobbyists in Washington, D.C., and the other from its officials in France."
During his speech, McArtor said that barely a decade ago, Airbus controlled only 18 percent of the global market for commercial jets. It now controls 54 percent.
Where Boeing once was delivering more than 600 aircraft a year, it is now delivering fewer than 300, he said. Airbus sales, meanwhile, have remained steady at a little more than 300 airplanes, McArtor said.
Airbus is now selling 12 different models, while Boeing will have only three commercially viable aircraft when the new 787 comes into service, he said.
Airbus would like to see the current negotiations between the United States and the European Union over government subsidies for the two companies succeed, McArtor said. If they don't, the aerospace industry could be threatened by a full-blown trade dispute, he said.
U.S. negotiators have said Airbus has received more than $15 billion in aid from European governments to launch its new planes, including the superjumbo A-380. The Europeans have countered that Boeing received indirect government subsidies through its military contracts and in tax breaks such as the $3.2 billion package Washington state provided for the 787 plant in Everett.
In the end, McArtor said a "balanced playing field" was needed, but he didn't expect all subsidies would automatically end.
"I simply don't think it's practical to believe the U.S. will stop supporting its aerospace industry and the Europeans will stop supporting their aerospace industry," he said.
Boeing has insisted all European government subsidies to help Airbus develop airplanes must end.
"We are of the firm conviction that launch aid must end as a condition of any agreement," said Dick Dalton, a Boeing spokesman. If Airbus had to pay back the $15 billion in subsidies it received at market interest rates it would have an additional $35 billion in debt, he said.
Without government subsidies, Dalton said, Airbus would be spending the same amount as Boeing on research and development.
In addition, Dalton said Airbus' parent companies, European Aeronautic Defense and Space Co. and BAE Systems, are diversified aerospace companies whose military sales exceed those of Boeing.
As for stock buybacks, Dalton said Boeing is a publicly owned company whose obligations include taking care of its shareholders.
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