Brittan rebuffs US demands for Airbus’ commercial plans

Date: 14/01/1999

By Chris Johnstone

TRADE Commissioner Sir Leon Brittan this week rebuffed US demands for the Union to reveal commercial secrets about plane consortium Airbus' plans to restructure itself and build a new giant aircraft.

Brittan's counterpart, US Trade Representative Charlene Barshefsky, wrote to the Commissioner last month asking for detailed information to explain why Airbus believed its plan to build a super jumbo capable of carrying around 600 passengers was financially viable.

stimated production costs and sales figures for the new aircraft. The move follows rival Boeing's decision not to press ahead with plans for its own version of the super jumbo.

Barshefsky also asked for details of Airbus' efforts to restructure itself along the lines of a normal company, abandoning the current rules which oblige it to share out work between the partners: DASA, British Aerospace, CASA and Aerospatiale.

The US claimed that it was entitled to such information under the terms of its long-standing bilateral deal with the EU governing aid to the two regions' aircraft manufacturers. This provides for a continuing exchange of information between administrations so that they can monitor what help is being given to the sector on either side of the Atlantic.

Brittan and his officials have, however, firmly and curtly rejected Barshefsky's demands, insisting that such information is not covered by the bilateral accord. “This was more or less a fishing trip by the US,” claimed one Commission source. “There has never been a request from us for similar information from Boeing.”

In his reply to Barshefsky's letter, Brittan also insisted that no details could be given of the Airbus restructuring because it had not yet been finalised. Sources suggest, however, that American officials could be given more information about the changes, once they happen, than will be made available publicly.

The recent exchange of letters is the latest episode in a simmering transatlantic dispute over aid to aeroplane manufacturers.

Aircraft are big export earners for both Europe and the US, with Airbus and Boeing sharing the world-wide market for models carrying more than 100 passengers.

The EU and Airbus claim the latest US demands for information are prompted by Boeing's falling sales. Production problems at American plants resulted in the dismissal of top Boeing managers last year and some of the firm's best-selling models have been the subject of safety warnings.

“The US administration is under pressure to do something,” claimed one EU official.

But Washington has long voiced doubts over Airbus' super jumbo project, questioning whether it is financially viable and whether the consortium will be able to complete work on the new aircraft without the help of EU government subsidies.