E.U. Dismisses U.S. Warning Over Airline Subsidies

Law360, New York (May 17, 2006, 12:00 AM EDT) -- The European Union has responded coolly to an earlier warning by the United States that padding Airbus’ remodeling plan for its A350 aircraft with additional aid would exacerbate an already tense dispute before the World Trade Organization.

The E.U. trade commissioner stated Wednesday that government aircraft subsidies should be handled the same way by both countries amid a WTO dispute in which both the U.S. and the E.U. have lodged complaints over launch aid Boeing and Airbus have received for their aircraft development programs.

“No E.U....
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