Airlines seek reduction in jet export subsidies

15/10/2010 12:00 - 384 Views

DALLAS -- Many of the world's largest airlines asked U.S. and European officials on Wednesday to reduce subsidies that help Boeing and Airbus sell planes to airlines in other parts of the world.

It's part of a growing fight that pits airlines from the U.S. and Europe against their main suppliers of jets.

The subsidies by U.S. and European governments help Boeing and Airbus sell planes by making them more affordable for carriers in places such as Asia and the Middle East.

But 24 big U.S. and European carriers, which said they employ 750,000 workers, said subsidies should be capped. They also said that any carriers getting the subsidies should pay higher interest rates that take into account political instability in their own countries.

Among those signing letters to U.S. and European officials were American Airlines, Delta, Air France, British Airways and Lufthansa.

The airlines are trying to influence ongoing international trade talks about rules over government subsidies for aircraft exports.

10.13.10, 08:44 PM EDT
Source: forbes.com