The Truth Will Stand At Last , Over 30 years of Unfair EU subsidies

The Truth will Stand At last
Over 30 Years of Unfair EU Subsidies for Airbus
Boeing KC-767 Tanker Will Tell Itself for
Strong and Global Standard also
75 Years Of Experience
Unfair European Union Subsidies Ending will make
Harmonize the Global Market

WASHINGTON – The Air Force fired a warning shot at Airbus on Tuesday, signaling that government subsidies the European company has received over the years could be a factor in the $100 billion refueling tanker competition.(1)

Two years ago, Boeing President & CEO Harry Stonecipher Statement to Employees on the US Air Force Tanker Program announced that Secretary of Defense Rumsfeld has implemented a pause in discussions between the U.S. Air Force and Boeing [NYSE: BA] on the Air Force tanker program while a series of reviews is undertaken. (4) It sure effected many workers in Boeing what the company had plan include Boeing suppliers and partners around the world.

It became the challenge to build 100 Tankers in Washington. Senator Patty Murray also announced that the as of July 15, 2004: The Department of Defense has now delayed the tanker deal until November at the earliest but, never seen the contract yet for the Boeing Company instead, EU attacked again. It was speechless to look at this: Meeting Society's needs and winning global leadership reported by Group of Personalities by Pedro Arguelles, John Lumsden, Manfred Bischoff, Denis Ranque, B.A.C. Droste, Paul Reutlinger, sir Richard Evans, Sir Ralph Robins, Walter Kroll, Helena Terho, Jean-Luc Lagardere, Arne Wittlov, and Alberto Lina (A Vision for 2020: Aircraft and an air transport system that are responding to society's needs, despite a three-fold increase in air transport)(13)

The EU financing the vision shows the preliminary estimated total funding required from all public and private sources over the next 20 years could go beyond €100 billion.

Some mechanisms included the EU's framework Programme, already exist while others will need to be created. Article 169(13) of the EU Treaty may be one such mechanism for creating synergies. The proportion of total public funding for aeronautics research provided by the EU has increased during the last ten years in an evolutionary process that has to find an appropriate balance between EU and national funding.

(3) Article 169 allows for voluntary joint research efforts involving some, but not all. Member states, with additional funding from the EU. The Article says: "In implementing the multiannual framework programme the Community may make provision, in agreement with he Member states concerned, for participation in research and development programmes undertaken by several Member States, including participation in the structures created for the execution of those programmes."(13a)

Senator Murray and Senator Maria Cantwell is continue to supporting till the first KC-767 rolls down the Everett line.

As many citizens' issues and concerns; Senator Patty Murray has been challenged Airbus to defending Washington's jobs. (3a)

But Boeing still did not have the contract yet which was expected have two years ago regardless many global parters and suppliers involved around the world.

Now after two year, Finally, Air Force wants details on Airbus subsidies. (2)

LES BLUMENTHAL; The News Tribune Published: April 26th, 2006 “Maybe we will finally get an honest answer from Airbus on this for once,” said Rep. Norm Dicks, D-Belfair, who has warned that government subsidies could give Airbus an unfair advantage when bidding on the tanker contract.

The Truth will stand at the last after over 30 years of unfair EU subsidies for Airbus,
Boeing KC-767 Tanker will tell itself for strong and global standards also has the 75 years of experience.

In June 2005,pilots flew the first Italian Air Force KC-767A advanced aerial refueling tanker on its first flight across the Atlantic Ocean for the Paris Air Show 2005. The tanker, called Italy #1, lifted off from McConnell Air Force Base, Wichita, Kan., June 9, for the12-hour flight to Le Bourget Airport in Paris. It is the first of four new aerial refueling tankers destined for the Italian Air Force. The flight to Paris is incorporated into a rigorous flight test and aerial refueling certification program that will total about 900 flight hours on completion. Boeing is scheduled to deliver the aircraft to the Italian Air Force in Spring 2006. The second Boeing 767 scheduled for modification into a KC-767A tanker has been delivered to the Aeronavali modification center near Naples, Italy.
"Boeing has a great launch customer in the Italian Air Force," said Jim O'Neill, Boeing vice president and Tanker program manager. "This is a completely new aerial refueling aircraft, designed with capabilities uniquely suited for the security needs of today and tomorrow. We are pleased to showcase the talents and skills of our Boeing tanker team and supplier partners." (5)

It is not only important for the United States also important for around the world, The Japanese and Italian governments have joined the U.S. Air Force in selecting a Boeing 767 variant to satisfy their tanker needs. The UK also seeks a modern tanker but is weighing a choice between the B767 and its chief rival, the Airbus A330 Multirole Tanker Transport (MRTT). These two aircraft are competing in a global market that Boeing estimates to be about 500 aircraft, worth some $100 million over the next 30 years. It is prospecting that many countries will be needed and ordering global standard, KC-767 Tanker as many as they needed.

Japan, which has acquired from Boeing 767 AWACS aircraft, made a decision in December 2001 to order four 767 tankers. Boeing expects a contract early this year, and deliveries are expected to run from the fourth quarter of 2006 to 2009. The Japanese aircraft, like the U.S. Air Force’s KC-767, will be equipped with the remote aerial refueling operator (RARO) station and boom. But unlike the KC-767, it will maintain the cockpit and 90-kVA generators used in commercial B767-200s.

The Air Force considers the 767 Tanker Transport to be technically a low-risk proposition. Boeing has delivered some 860 B767s to 85 operators, and the 767 fleet has amassed about 31 million flight hours. To "mitigate schedule risks" in fielding the 767 Tanker Transport (designated by the Air Force as the KC-767) within a short time frame, the Air Force will receive the first 50 aircraft equipped with a center line hose and drogue (called the hose drum unit) and a boom, but not with refueling pods and hoses on the wings, according to Gorsuch. "The wing pods may come with the second spiral of aircraft," he adds.

The KC-767 Testing and Training configuration has been established, and design and development is under way. Although a B767 has yet to be equipped for the refueling mission, Boeing and the Air Force have been able to test the aircraft suitability for the mission.

"We’ve done proximity testing, flying aircraft close to the 767," says Gorsuch. "At Patuxtent River [Naval Air Station], we conducted tests with the F/A-18 and S-3 in 2000, and in the summer of 2002, we tested with the C-17. The test showed that the 767 is an extremely stable platform for refueling small and large aircraft alike."

Aerial refueling operators have had a chance to evaluate the RARO, as well, and "they were impressed," says Gorsuch. The Boeing official believes it will take no more time to train operators on the RARO than it did training them to work the old way, on their stomachs.

Aerial Refueling 101 Aerial tankers can refuel aircraft in three ways: A boom, positioned below the aircraft tail; it has a "ruddevator," a V-shape wing system with control surfaces to allow the operator to maintain the boom’s consistent elevation and azimuth; A center line hose and drogue, called a hose drum unit; the hose is extended from the tanker aircraft’s belly; and Wing pods, which extend a hose and drogue from the tanker wings.

Boeing 767 with the nickname, "smart tanker." Boeing is a veteran in the tanker business, having delivered more than 1,900 refueling aircraft, ranging from the propeller-driven KB-29, flown in the 1940s, to a converted B747. It built 761 KC-135 tankers for the Air Force, 545 of which are still in operation. The average age of these aircraft is more than 40 years, which is why the service now seeks a replacement.(16).

With all all above the above and beyond there are so much to tell about the KC-767 Tanker however, EU continue has been Unfair EU subsidies for Airbus and harming the global balance besides that even trying to attacking the 75 years of experienced KC-767 Tanker. Speaking of attacking why? We the citizens understand and well know factor that congress has passed the U.S President George Bush to do the additional action for unfair EU subsidies to stop. But we never heard since that news has been flashed all over the place around the world......

The Truth will Always show at the last, there is no secret that over 30 years of EU subsidies and can not hide the fact:

Per reference http://usinfo.state.gov/usa/infousa/facts/democrac/57.htm shows that The United States offered up to $20 billion for relief, but only if the European nations could get together and draw up a rational plan on how they would use the aid. The Marshall Plan, it should be noted, benefited the American economy as well. The money would be used to buy goods from the United States, and they had to be shipped across the Atlantic on American merchant vessels. But it worked. By 1953 the United States had pumped in $13 billion, and Europe was standing on its feet again. Moreover, the Plan included West Germany, which was thus reintegrated into the European community. (The aid was all economic; it did not include military aid until after the Korean War.) (9)

Despite the years of scandal and battles over subsidies, new subsidy improprieties come up every year. The plans to support the a350 are especially suspect: “A midnight amendment to Germany’s 2005 budget showed Germany plans to help the a350 with $890 million in government funds that originated as part of the U.S. Marshall Plan” (Chicago Tribune, May 20). The Marshall Plan was created to rebuild Germany after World War ii; it’s unlikely the drafters of the plan intended to rebuild Germany at an altitude of several thousand feet. (10) (11) .

According to The United States further notes that certain launch aid provided for the A340 and A380 appear to be illegal export subsidies in contravention of certain provisions of Article 3 of the SCM Agreement. The United States is further concerned that the measures appear to be causing adverse effects to US in a manner contrary to the provisions of Articles 5 and 6 of the SCM Agreement. The United States is also concerned that the measures appear to be inconsistent with Article XVI:1 of GATT 1994. Finally, the United States is concerned that the measures have caused and continue to cause nullification or impairment of benefits to the United States under GATT 1994 within the meaning of Article XXIII:1. (12).

Tensions increased by the measures include: the provision of financing for design and development to Airbus companies (“launch aid”); the provision of grants and government-provided goods and services to develop, expand, and upgrade Airbus manufacturing sites for the development and production of the Airbus A380; the provision of loans on preferential terms; the assumption and forgiveness of debt resulting from launch and other large civil aircraft production and development financing; the provision of equity infusions and grants; the provision of research and development loans and grants in support of large civil aircraft development, directly for the benefit of Airbus, and any other measures involving a financial contribution to the Airbus companies. The subsidies in question include those relating to the entire family of Airbus products (A300 through the A380) (10)

“financial contribution” (e.g., a loan) on better than commercial terms. The subsidies at issue are either “prohibited” because they are export subsidies, or “actionable” because they cause “adverse effects” to the United States, or both, also distorted global market balance.

Launch aid, or direct subsidies for the development of new models of Airbus aircraft, is the principal type of subsidy that Airbus has used to develop its product line. Launch aid is up-front, no- or low-interest financing from EU governments that Airbus only needs to repay if the aircraft model being financed is successful. (Repayment is via a per-plane levy, so if the aircraft does not sell well, some or all of the financing is forgiven.)(18).

See the Following Launch Aid By Plane from European Union: (11)

Launch Aid By Plane

Airbus	Subsidies By	Subsidy Amount	Total
A300/A310	Germany	$1.55 billion
	U.K	None
	France	$2.05 billion
	Spain	$233 million
Total			$3.83 billion
A320	Germany	$702 million
	U.K	$567 million
	France	$672 million
	Spain	$87 million
Total			$2.03 billion
A330/A340	Germany	$2.01 billion
	U.K	$1.04 billion
	France	$1.45 billion
	Spain	$270 million
Total			$4.77 billion
A330-200	Germany	None
	U.K	None
	France	$58 million
	Spain	None
Total			$58 million
A340-500 / A340-600	Germany	None
	U.K	$215 million
	France	$337 million
	Spain	$75 million
Total			$627 million
A380	Germany	$1.07 billion
	U.K	$867 million
	France	$1.37 billion
	Spain	$426 million
Total			$3.73 billion

Note: Dollar amounts reflect payments in each country's own currency, indexed to 2003, and converted at rates applicable in the year of disbursement.

Overview of infrastructure subsidies for the Airbus A380.

GERMANY: $857 million

$850 million: Spent by the City of Hamburg to fill a part of the River Elbe to accommodate the expansion of a production facility.

More than $7 million: Provided as a grant by the Land of Lower Saxony for the expansion of its facilities in the City of Nordenham.

U.K.: $408 million

$376 million: Provided to fund the Broughton site.

$32 million: Given as a land grant from the National Assembly for Wales.

FRANCE: $298 million

$206 million: A public investment for an assembly site in Toulouse.

$82.6 million: Provided for road construction between Langon (port on the Garonne River) and a production site in Toulouse.

$9.7 million: Provided for construction in ports and along the Garonne River to accommodate transportation of A380 fuselages.

SPAIN: $143 million

$143 million: Investments made in Puerto de Santa Maria, Illescas, Puerto Real and La Rinconada plants." .

Debt Forgiveness. European governments have assumed and forgiven billions of dollars worth of debt owed by Airbus. For example, in 1997-1998, the German government entered into agreements with Deutsche Airbus to “settle” all outstanding debt that the company owed to the government. Although the total outstanding debt exceeded DM 10 billion, the government allowed Deutsche Airbus to repay just DM 3.135 billion. (18)

Equity Infusions and Grants. European governments, and the French and German governments in particular (including through government-owned banks), have made several equity infusions and grants into the Airbus companies that private investors would not have made. Equity infusions on non-commercial terms are subsidies under WTO rules.

Airbus is jointly held by EADS (80%) and BAE Systems (20%), Europe's two largest defence contractors. BAE Systems is selling their 20% stake, with EADS being the most likely buyer (and has right of first refusal.)[1] Airbus employs around 50,000 people in essentially four European countries: France, Germany, the United Kingdom, and Spain. Final assembly production occurs at Toulouse (France) and Hamburg (Germany). (6)

Airbus employs around 50,000 people in essentially four European countries: France, Germany, the United Kingdom, and Spain. Final assembly production occurs at Toulouse (France) and Hamburg (Germany).

The Boeing Company employees around 152,091 (Year 2005 status). The Boeing Company is the world’s largest aircraft manufacturer. Headquartered in Chicago, Illinois, Boeing is the second-largest defense contractor in the world.[1] In 2005, the company was the world’s largest civil aircraft manufacturer in terms of value (with 49% of orders and 45% of deliveries), overtaking Airbus for the first time since 2000. (7a)

Airbus receives military contracts that are awarded by various governments all over the world. It would be a mistake to say that one side is getting the subsidy, while the other side is not. However Airbus claims that the tax breaks offered to Boeing.

October 6, 2004, Washington DC, United States Trade Representative's announcement shows that the United States will withdraw from a 1992 aerospace agreement with Europe and file a dispute settlement case against the European Union at the World Trade Organization. (14)(15).

We the citizens, many of us agree 100 percent with Senator Maria Cantwell what she says in September, 2003 that "I think the American people and our warfighters would want U.S. Air Force tankers that are made by American workers and suppliers. "The deal at hand is vital to our national security and it is good for the U.S. taxpayer." (16).

To conclude, it is Washington State citizens request that we want this economic packages to pass AS SOON AS POSSIBLE after SO MANY YEARS OF congressional hearings and reviews INTERNAL OR OUTSIDE OF the Pentagon, the future of the next generation of Air Force tankers and the Everett-based KC-767 assembly line CAN START SOON AND WORKERS do not have to worry and concern AND USA ECONOMIC REMAINS STABLE (Especially the Boeing defense spaces is laying off people now: Wichita and California(C-17 Program may shut down if there are no more orders after 2008)…...

It is positive to see the Air Force wants details on Airbus subsidies. Hopefully, The United States of America President will recognize what is necessary to do and do the action....

Reported by Sandra Englund April 30, 2006.

References:

(1) http://www.thenewstribune.com/business/story/5693107p-5101935c.html

(2) http://en.wikipedia.org/wiki/Airbus

(2a) Sub Title: Subsidies : http://en.wikipedia.org/wiki/Airbus

(2b) http://www.wto.org/english/tratop_e/dispu_e/cases_e/ds316_e.htm

(3)http://murray.senate.gov/tankers/index.cfm

(3a) http://murray.senate.gov/news/040409-waview.pdf

(4) http://www.boeing.com/news/releases/2004/q1/nr_040220a.html

(5)http://www.boeing.com/news/releases/2005/q2/nr_050610s.html

(6)http://en.wikipedia.org/wiki/Airbus

(7) http://en.wikipedia.org/wiki/Boeing