Airbus urges airlines to pressure Boeing over subsidy row

The United States and Europe have been locked in a 15-year spat over mutual claims of illegal aid to plane giants. (File/AFP)
Updated 02 June 2019

Airbus urges airlines to pressure Boeing over subsidy row

SEOUL: Airbus has written to airline leaders to appeal for their backing in a trade dispute with rival Boeing, warning of higher aircraft prices and passenger fares if the United States and European Union descend into a tariff war.
The appeal was issued in a letter to several airline bosses meeting in Seoul where the International Air Transport Association has warned of the impact of broader global trade tensions, a person familiar with the issuance of the letter told Reuters.
The United States and Europe have been locked in a 15-year spat over mutual claims of illegal aid to plane giants.
US President Donald Trump threatened last month to impose tariffs on $11 billion of European goods including planes and their parts, prompting the European Union to propose a list of $20 billion worth of US imports it could hit in retaliation.
“If the tariffs are applied, the effects would include greatly increased costs to US and European airlines, aerospace suppliers and manufacturers,” Airbus sales chief Christian Scherer said in the text of the letter seen by Reuters.
It asked airlines to “urge Boeing to enter into the negotiations proposed by the EU and Airbus.”
Airbus and Boeing had no immediate comment.
It is the first time either company has sought to directly involve the airline industry in the dispute, which is the largest ever handled by the World Trade Organization.
US carrier Delta Air Lines has said it opposes the US tariff threats, saying they harm US interests.
Delegates at the IATA talks said airlines would weigh carefully whether to step directly into the aircraft dispute which has laid bare intense competition for plane orders and which has cost the warring parties tens of millions of dollars.
But IATA, which groups 290 airlines representing 82 percent of global traffic, is expected to express growing concerns about a worsening pattern of global trade tensions which has already depressed cargo business and threatens some passenger demand.


Aramco chief sees demand for oil staying above 100m barrels

Updated 23 January 2020

Aramco chief sees demand for oil staying above 100m barrels

  • A panel on the global energy outlook at the WEF in Davos heard that renewable energy alone would not be able to meet rising demand for power as more people moved into the middle class
  • The panel also heard that coal, not oil, remained the biggest source of carbon emissions

DAVOS: Aramco CEO Amin Nasser said he expected global oil demand to stay above the 100 million barrels threshold as the rise of the global middle class spurred demand for energy.
A panel on the global energy outlook at the World Economic Forum in Davos heard that renewable energy alone would not be able to meet rising demand for power as more people moved into the middle class.
“There will be additional demand and the only way to meet it is if you continue to provide affordable, reliable and viable energy to the rest of the world,” said the Aramco CEO.
“There is good penetration from renewables and electric cars are picking up however you need to consider what is happening in the world. There are still an additional 2 billion people coming. There are currently 3 billion people using biomass, animal dung, kerosene for cooking and there are 1 billion people today without electricity and almost 50 percent of people have never flown in an aeroplane.”
The panel heard that coal, not oil, remained the biggest source of carbon emissions but that the location of many coal-fired power plants in developing Asian economies meant that reducing its impact was a major challenge.
“The number one source of emissions by far is the coal fire power plants – they alone are responsible for one third of emissions,” said International Energy Agency Executive Director Fatih Birol. “But they are in many cases the number one source of electricity generation in low income countries - so this is not a black and white issue.”