Aerospace & Defense

Boeing (BA) Gets Hand-Outs From US Govt, According To Airbus

All that work that Boeing (BA) gets to build military aircraft. It is really a disguised way to help the US company’s profits so that it can beat the daylights out of Airbus in the commercial aviation business. The same holds true for tax breaks that Boeing gets in places like Washington state so that it will build and expand factories.

According to Reuters, Airbus is arguing to the World Trade Organization that Boeing’s work for NASA and the Defense Department also saves it R&D money because the by-products of government work can be used to build commercial planes. “We will produce the cold facts to demonstrate subsidy by subsidy how U.S. subsidies have benefited Boeing and injured Airbus interests,” an Airbus official told the news service.

Airbus and the European Union say unfair U.S. subsidies to Boeing over the past two decades and running to 2024 total $23.7 billion.

It is nice that Boeing gets all of that government work, but the real question is whether some other company could have gotten it just as well, if it had the capacity to give US agencies what they needed in terms of products.

Proving that the US favored one company that way could be very hard to prove.

Douglas A. McIntyre