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Subject: Re: Legacy airlines should have smashed their unions long ago Posted on: 25 Oct 2004 03:42:04 GMT

"Keith Willshaw" wrote in news:clfvip$r1d
$1$8300dec7@news.demon.co.uk:
> "alohacyberian" wrote in message
> news:cZJed.23862$OD2.22773@bgtnsc05-news.ops.worldnet.att.net...
>> Boeing also has union workers; the major difference is that Airbus is
>> subsidized by government handouts, Boeing isn't. When Boeing gets
>> government money, it must provide something in return - Airbus isn't
>> hampered by such restrictions to it's government welfare. KM
> Airbus Industrie is now an investor owned company that
> makes a profit. 80% of the shares are held by EADS
> and 20% by BAE Systems.
>
> The only direct government investor is the French State
> which holds exactly 0.06% of the shares in EADS

Ownership is different than subsidization...

One-third the cost of A380 development was given to Airbus by the
respective governments as development commenced; this launch aid will not
be repaid at all till Airbus sells the 400th A380, then it will be repaid
in installments only as each A380 is sold; and the government will only be
repaid in full when the 1000th A380 is sold. Pretty good deal, no?

And this is covered in an EU-US deal, so it's perfectly legal. But it is a
subsidy. And Airbus is wisely moving to secure such a subsidy for the
upcoming A350 before any change in the rules can occur.

--lw--

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