​Boeing 777X Jetliner Allegedly Received Boeing Tax Breaks

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May 22, 2021

Boeing continues to strive with its latest jetliner, the 777X, which has challenged Airbus to evolve the design of its A380 superjumbo in response. The 777X has come a long ways and seems to be the airliner of choice, unless Airbus can compete.

Speaking on the eve of the Berlin Airshow, Fabrice Bregier, the chief executive of the plane-making unit of Airbus Group, lashed out at the $8.7 billion in tax breaks as transatlantic tensions flared anew over mutual charges of unfair aid to Boeing and for its 777X.

However, Boeing denies the tax breaks were unfair and said Airbus was receiving banned European support.

Airbus said the 777x presented a challenge to its superjumbo.

“We will face after 2020 the challenge of the Boeing 777x. It is clear that as the challenges evolve, the A380 will have to evolve as well,” Bregier told reporters, without elaborating.

Bregier said he had grown more optimistic about a possible revamp of the A330 wide-body jet because of strong demand from airlines, but insisted no decision had been taken.

Airbus plans to decide later this year whether to upgrade the wide-body jet with new engines to provide fuel savings and better compete with the Boeing 787 Dreamliner.

“I am probably more optimistic than I was in January because, in January, I discarded the idea, but I can’t tell you whether we will launch it or not,” Bregier said.

Reuters reported on Friday that the European Union is considering raising the stakes in the world’s largest trade dispute by challenging the Washington state tax breaks as part of compliance proceedings at the World Trade Organization.

Airbus has said the tax breaks distort the economics of building Boeing’s largest ever twin-engine jet in the state, where most of its commercial operations are based.

Boeing has denied this and said the aid was available to all aerospace companies in the state, including Airbus suppliers.

Bregier reacted angrily to Boeing’s statement that it only receives a “fraction” of the state tax incentives.

“This is bull—-,” he told the press briefing.

He called on the European Commission to do more to level the playing field against what he saw as unfair competition, and also urged monetary authorities to increase support for European exporters with their currency policies.