Boeing Flags €3-Bn EU Loan to Airbus; Seeks US Intervention

Boeing has asked the US government to seek a detailed explanation from the European Union (EU) over a €3-billion (about $3.43 billion) loan package approved for Airbus, reviving concerns over aircraft subsidies despite an ongoing truce between the two sides, according to a Reuters report.

In a letter to US Trade Representative Jamieson Greer, seen by the news agency, Boeing requested that Washington ask the EU for a "full accounting" of the loan terms and explain how the funding aligns with the 2021 US-EU agreement on aircraft subsidies.

The move comes as Airbus has been discussing plans to begin developing a next-generation aircraft around 2030, potentially setting the stage for a new phase of competition in the global aviation market.

Boeing Questions Timing of Airbus Loan

According to the report, Boeing said it was surprised by the June 29 announcement from the European Investment Bank (EIB) committing its largest-ever corporate loan package to Airbus.

The aircraft maker noted that the announcement came just four days after the European Union extended the standstill agreement that paused the long-running subsidy dispute between Boeing and Airbus.

In its letter, Boeing said the timing of the funding was "surprising" and argued that the loan raises questions about whether the EU has followed the commitment to maintain an open and transparent process under the 2021 agreement.

EIB Defends Funding, Airbus Eyes New Aircraft

The EIB rejected suggestions that Airbus had received any special treatment. According to the news agency, an EIB spokesperson described the financing as a standard interest-bearing corporate loan that forms part of the bank's regular lending activities.

The EIB said the loan package would support Airbus' long-term investment plans through 2030. Boeing pointed out that this is also the year Airbus Chief Executive Guillaume Faury has indicated the company could begin developing a successor to its best-selling A320neo aircraft.

Faury recently told Aviation Week that Airbus is targeting a new aircraft programme around 2030 under the internal project name "eAction".

Subsidy Dispute Remains in Background

Boeing and Airbus spent nearly two decades battling each other at the World Trade Organization (WTO) over claims of unfair government subsidies, a dispute that resulted in retaliatory tariffs affecting several industries on both sides of the Atlantic.

The US and the EU agreed to suspend those tariff measures in 2021, and Reuters reported that the arrangement, which was due to expire earlier this month, has now been extended indefinitely.

While trade tensions between the two aerospace rivals have eased in recent years, Boeing's latest request suggests concerns over government support for aircraft development continue. Reuters also reported that Boeing's concerns could become part of broader trade discussions between Washington and its trading partners.