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Old 16th Sep 2016, 01:25
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CONSO
 
Join Date: Mar 2014
Location: WA STATE
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A short history of Airbus and finances

Most do not realize the game that Airbus has played dating back to the 1990's here is a short version of $$$, sales, subsidy, and related

1) GATT 92 ( 1992) ( now known as WTO ) set up rules for subsidy of LCA ( large commercial aircraft ) - which was really undefined other than probably larger than a piper cub.

2) This allowed nations to give deserving aircraft companies preferential- low cost loans for R&D and intital production

3) $$$ involved were based on projected sales by certain dates, and forgiveness if those targets were not met.

4) While there have been changes and arguments re Boeing and Airbus over the year as to what counts as subsidy, and changes as to ground rules- the basics in 2) still apply

5) Now about the 380. Under 2) it NOW appears that the A380 will not meet the sales goals in the agreed on time frame. Thus a good part of the ' research and early production loans ' will probably never have to be paid back . Whether or not A freighter version would also follow under the initial ground rules for additional ' loans' is NOT obvious to most of the pundits.
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