109TH CONGRESS

1ST SESSION S. CON. RES. 25

CONCURRENT RESOLUTION

Whereas Airbus is currently the leading manufacturer of

large civil aircraft, with a full fleet of aircraft and more

than 50 percent global market share;

Whereas Airbus has received approximately $30,000,000,000

in market distorting subsidies from European governments, including launch aid, infrastructure support, debt

forgiveness, equity infusions, and research and development funding;

Whereas these subsidies, in particular launch aid, have lowered Airbus’ development costs and shifted the risk of

aircraft development to European governments, and

thereby enabled Airbus to develop aircraft at an accelerated pace and sell these aircraft at prices and on terms

that would otherwise be unsustainable;

Whereas the benefit of these subsidies to Airbus is enormous,

including, at a minimum, the avoidance of

$35,000,000,000 in debt as a result of launch aid’s noncommercial interest rate;

Whereas over the past 5 years, Airbus has gained 20 points

of world market share and 45 points of market share in

the United States, all at the expense of Boeing, its only

competitor;
 †

2

SCON 25 ES

Whereas this dramatic shift in market share has had a tremendous impact, resulting in the loss of over 60,000

high-paying United States aerospace jobs;

Whereas on October 6, 2004, the United States Trade Representative filed a complaint at the World Trade Organization on the basis that all of the subsidies that the European Union and its Member States have provided to

Airbus violate World Trade Organization rules;

Whereas on January 11, 2005, the European Union agreed

to freeze the provision of launch aid and other government support and negotiate with a view to reaching a

comprehensive, bilateral agreement covering all government supports in the large civil aircraft sector;

Whereas the Bush administration has shown strong leadership and dedication to bring about a fair resolution during the negotiations;

Whereas Airbus received $6,200,000,000 in government subsidies to build the A380;

Whereas Airbus has now committed to develop and produce

yet another new model, the A350, even before the A380

is out of the development phase;

Whereas Airbus has stated that it does not need launch aid

to build the A350, but has nevertheless applied for and

European governments are prepared to provide

$1,700,000,000 in new launch aid; and

Whereas European governments are apparently determined to

target the United States aerospace sector and Boeing’s

position in the large civil aircraft market by providing

Airbus with continuing support to lower its costs and reduce its risk: Now, therefore, be it
†

3

SCON 25 ES

1 Resolved by the Senate (the House of Representatives

2 concurring), That—

3 (1) European governments should reject Airbus’

4 pending application for launch aid for the A350 and

5 any future applications for launch aid;

6 (2) the European Union, acting for itself and

7 on behalf of its Member States, should renew its

8 commitment to the terms agreed to on January 11,

9 2005;

10 (3) the United States Trade Representative

11 should request the formation of a World Trade Or12 ganization dispute resolution panel at the earliest

13 possible opportunity if there is no immediate agree14 ment to eliminate launch aid for the A350 and all

15 future models and no concrete progress toward a

16 comprehensive bilateral agreement covering all gov17 ernment supports in the large aircraft sector; and

18 (4) the President should take any additional ac19 tion the President considers appropriate to protect
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4

SCON 25 ES

1 the interests of the United States in fair competition

2 in the large commercial aircraft market.

Passed the Senate April 11, 2005.

Attest:

Secretary.
109TH CONGRESS

1ST SESSION S. CON. RES. 25

CONCURRENT RESOLUTION

Expressing the sense of Congress regarding the

application of Airbus for launch aid.