Airbus plays the subsidy game in America


Airbus Industrie counters United States accusations of unfair subsidies with its own claim that Boeing receives subsidies from state and local governments when it builds factories. But Airbus is not above playing the very same game in America.

Because of criticism that Boeing was charging too much on a proposed deal to lease a fleet of 767—based airborne refueling tankers to the Air Force, Airbus has an opening to sell tankers to the United States. But local content rules will require an American assembly facility be built. So, Airbus is merrily playing—off states and cities against each other, int he time—honored capitalist fashion of angling for the best deal in the marketplace.

Right now, it looks as though Alabama has the upper hand. Melbourne, FL (near Cape Canaveral) is losing out. But, as this article notes, the whole deal may amount to nothing.

Hat tip: Joe Crowley

Thomas Lifson   6 22 05