Prodi protests to Koizumi over jet deal

Date: 30/04/03

By David Cronin

ROMANO Prodi, the European Commission president, has written a stinging letter to Japanese premier Junichiro Koizumi alleging unfair favouritism towards the United States against the EU in a major airline contract.

It was prompted by the decision of All Nippon Airways (ANA) to buy planes from US manufacturer Boeing rather than France's Airbus.

Prodi states that EU officials have information "suggesting that the European competitor is to be denied a fair chance in the selection process".

The letter, a copy of which European Voice has obtained, adds: "This kind of process risks sending a negative signal for EU-Japan trading relations. I would like to invite you to share my concerns with ANA's management that there should be a level playing field as a matter of urgency."

Prodi will raise the matter again when he meets Koizumi face-to-face at the EU-Japan summit in Athens on Friday (2 May).

ANA's 9 April decision to buy 45 of Boeing's B737-700 aircraft in a €1.5 billion deal was a major setback for Airbus.

ANA, Japan's second-largest carrier, is due to replace its current fleet of 25 Airbus A320s with its acquisitions.

In his letter, Prodi accepts that ANA is a privately-owned firm but argues that the episode raised "an important issue of principle".

Japan's EU ambassador Kazuo Asakai refuted Prodi's claims: "This is not a small company, but it is just one company, picking one product over something else. Air France doesn't buy much from Japan, but that is their choice."

An Airbus spokesman said the Toulouse-based firm would continue trying to sell its models in the world's second largest economy as "we're convinced we offer the best solution".

Romano Prodi, the European Commission president, has written a stinging letter to Japanese premier Junichiro Koizumi alleging unfair favouritism towards the United States against the EU in a major airline contract.