EU-US Relations: Huge trade tariffs on Europe could come soon if US wins WTO fight - by David Reid

The World Trade Organization (WTO) has found that both European planemaker Airbus (AIR.PA) and its U.S. rival Boeing (BA.N) received billions of dollars of illegal subsidies in a pair of cases that have run for 15 years.

Both sides have threatened tariffs after the Geneva body found neither adhered fully to its findings. However, the United States has a head start, with the European Union having to wait until early in 2020 to hear what level of retaliation it can exact over Boeing.

The WTO is expected this week to reveal the amount of EU goods the United States can target. People familiar with the case say the three-person tribunal is expected to award it around $7.5 billion, a record for the 24-year-old watchdog.

Such retaliation rights are rarely granted by the WTO - most parties reach settlements - and in many cases complainants do not exercise their rights.

The United States though has indicated it will target EU goods to the fullest extent.

It has already published a $25 billion list from which it will pick items to target from aircraft and aerospace parts to wine, cheese and luxury goods.
The WTO award in the world’s largest corporate trade dispute could fuel already strained trade tensions, diplomats say.

Read more at: Huge trade tariffs on Europe could come next week if US wins WTO fight

Airline Industry - Cargo Class: Airbus to offer sleeping berths down in cargo hold

Soon when you fly in an Airbus jet and you fancy a bit of shut-eye, all you will need do is make your way down to the cargo hold.

European aircraft giant Airbus announced on Tuesday that it is teaming up with Zodiac Aerospace to develop and market lower deck sleeping facilities for passengers that could be operational in A330 wide-body jets from 2020.

The sleeper compartments "would fit inside the aircraft's cargo compartments," Airbus said in a joint statement with Zodiac, a subsidiary of the French aerospace company Safran.

The modules "will be easily interchangeable with regular cargo containers,"the statement said.

"Airlines will initially be able to choose from a catalogue of certified solutions by 2020 on A330," for the sleeper pods, with the possibility of fitting them into A350 XWB airliners also being studied.

Airbus and Zodiac said the sleeping berths would not only improve passenger comfort, but also enable airlines to add value for their commercial operations.

"This approach to commercial air travel is a step change towards passenger comfort," said Geoff Pinner, head of Airbus' cabin and cargo program.

"We have already received very positive feedback from several airlines on our first mock-ups."

Christophe Bernardini, head of Zodiac's aerospace cabin division, said the project "reaffirms our expertise in lower-deck solutions. An improved passenger experience is today a key element of differentiation for airlines."

In November 2016, the Air France-KLM had put forward the idea of sleeping berths for passengers in the economy class, either down in the hold or above the cabin in aircraft of the group's new low-cost subsidiary, Joon.

Read more: Airbus to offer sleeping berths down in cargo hold

Weapons Industry: A vicious Circle, as US, Russia,China, EU create wars in Middle East and arms sales there soar amid widespread conflict

Arms imports by Middle East countries mired in violent conflict have doubled in 10 years — and the US, Russia and Europe remain the major suppliers, according to latest research.

Arms imports by Middle Eastern states have more than doubled over the past decade, with the US and European countries the main suppliers of weapons to the region. This is one of the main conclusions of the latest report by SIPRI — the Stockholm International Peace Research Institute.

The independent think-tank dedicated to arms control and disarmament says the volume of international major weapons shipments rose by 10 per cent between 2013-2017 compared to the previous five-year period — largely due to an increase to the far east and the Middle East.

Five countries — the United States, Russia, France, Germany and China — accounted for nearly three-quarters of all arms exports over the past five years.

Note EU-Digest:  :"War is most profitable for us", said one major arms exporter, "and let no one tell you that countries involved in these proxy wars, are in it for moral reasons, It all comes down to economic benefits. So please rest assured these wars will go on forever, for some reason or whatever".

Read more: US and European arms sales to Middle East soar amid widespread conflict | Euronews

NSA Spying on EU Industries: Airbus to file complaint over US-Germany spying allegations

Airbus says it plans to complain to German authorities over reports of spying.

The aviation giant claims Berlin’s foreign intelligence agency helped America to spy on it and other European companies.

Der Spiegel reports that officials of Germany’s BND service indirectly helped the US National Security Agency (NSA) over a 10 year period.

It is claimed that BND officials passed internet addresses and mobile phone numbers to the NSA.
“We’ve asked the government for more information,” said an Airbus spokesman in Germany.
“We will launch a complaint against an unknown person on suspicion of industrial espionage.”

The reports have caused alarm in Germany, where security is a sensitive issue.

The country’s Interior Minister, Thomas de Maiziere, a close ally of Chancellor Angela Merkel, has denied that he lied to parliament about intelligence cooperation with US spy agencies.

When allegations emerged in 2013 that America had bugged Merkel’s mobile phone, she said that spying among “friends” was not acceptable.

Read more: Airbus to file complaint over US-Germany spying allegations | euronews, world news

European Aircraft Industries: Japan Airlines CFO: Airbus was just 'better' - by Katie Hollid

Airbus A-350

After French aviation manufacturer Airbus won a tense battle against Boeing for the business of Japan's second largest airline last year, the firm's chief financial officer told CNBC Airbus was just "better."

Japan Airlines announced its first jet order for the French aircraft manufacturer in October for 31 A350 aircraft worth $9.5 billion, breaking into an aviation market which had been dominated by rival Boeing.

"We needed a successor to our largest aircraft, the 777. When we compared what both Boeing and Airbus had to offer, Airbus was better," managing executive officer of finance & accounting Norikazu Saito told CNBC. "It may have been a disappointment to Boeing, but they of course understand that business is business."

Saito told CNBC that the biggest payoff from working with Airbus would be increased economic efficiency, although there would be some complications with owning two different brands of aircraft.

"Pilots need to have different licenses; you need to have spare parts for both manufacturers. But even taking all those things into account, Airbus was the better choice," he said.

JAL faced some negative publicity earlier in the year when it temporarily grounded one of its Boeing 787 Dreamliners at Tokyo's Narita International Airport in mid-January, after white smoke was spotted outside the plane and a battery cell showed clear signs of leaking.

Read more: Japan Airlines CFO: Airbus was just 'better'

European Aircraft Industry: Airbus 9-mth orders top 1,000 aircraft, beating target

Airbus A35=900

Airbus orders rose to more than 1,000 aircraft in the first nine months of the year, beating its target for 2013, after the planemaker booked a raft of orders which had been pending from European airlines.

However, its order book was dented by the cancellation of three A380 superjumbos earmarked for Germany's Lufthansa , which this month ordered a batch of smaller long-distance aircraft from both Airbus and Boeing.

Lufthansa's order for the world's largest passenger jet now stands at 14, of which 10 have been delivered.
A spokesman for the airline said the orders had been "firm options," meaning they needed to be reconfirmed to be valid.

Airbus, a unit of EADS, revised its order target up to more than 1,000 aircraft in July, as airlines continue to renew their fleets with more efficient models to reduce fuel costs. Industry sources have said Airbus is aiming for as many as 1,200 orders.

Read more: UPDATE 1-Airbus 9-mth orders top 1,000 aircraft, beating target | Reuters

New Airbus plane takes off at Paris Air Show

A350 above Toulouse France

The Airbus next-generation A350 plane took centre stage at the Paris Air Show on Wednesday, winning multi-billion-dollar deals ahead of a much-anticipated possible fly-over.

The news comes just days after the new plane took to the skies in its first ever test flight on Friday, stealing the limelight before the start of the air show -- a key event where Airbus and Boeing compete fiercely for plane orders.

The European plane maker is currently ahead of its arch-rival at the show -- $53.2 billion in new plane orders or agreements for Airbus versus $45.2 billion for Boeing.

Air France-KLM on Wednesday confirmed an order for 25 A350 planes -- which make extensive use of lighter composite materials to reduce fuel costs -- in a deal worth $7.2 billion at catalogue prices.

Read more: New Airbus plane takes off at Paris Air Show | Bangkok Post: news

South Africa - Airbus and Denel Aerostructures sign landmark agreement:

A400M military transport

Denel Aerostructures (DAe) and  Airbus Military have signed a new agreement for the manufacturing of components for the A400M military transport aircraft, strengthening the company’s position in the international defense environment and confirming it as one of South Africa’s strategic public assets.

Addressing senior government officials, diplomats and Airbus executives before the signing ceremony, Denel Aerostructures Chief Executive Officer Ismail Dockrat, said the historic signing was an event of great significance not only to DAe, but also the broader South African defence industry.  It not only confirmed the company’s growing stature in the international defence environment, it also showed the company as a reliable participant in multi-national manufacturing initiatives life the A400M programme.

Public Enterprises Minister Malusi Gigaba said the company employed some of the most highly-skilled technicians and engineers in the country. The government considered it a national strategic asset and in this regard it was necessary to foster its growth and development. Gigaba said the allocation for R700 million in the 2012 budget further underlined this position.

Read more: SABC News.com - Airbus and Denel Aerostructures sign landmark agreement:Monday 17 September 2012

Aircraft Industry: China to buy 50 Airbus planes for Euro 2.78 Bn

Airbus A350

China has signed a deal to buy 50 planes worth Euro 2.78 Bn ($3.5bn) from Europe's Airbus.

The agreement is part of a slew of trade deals signed by German Chancellor Angela Merkel at the start of a two-day visit to China.

This is the first significant deal in China for Airbus, whose parent company is EADS, since a dispute between the country and the European Union over the Emissions Trading Scheme (ETS).

An agreement on Airbus plane assembly in China was also signed, according to the Xinhua news agency.

Read more: The Statesman : Business : China to buy 50 Airbus planes for $3.5bn

Airbus to build A390, a seven story airliner

With production and delivery of its first 555 passenger, double-deck commercial airliner underway, Airbus announced that it has initiated preliminary studies for the design and manufacture a 2600 passenger airplane.

The aircraft on the drawing board will have ten decks—seven for passengers, three for cargo and baggage. A prototype of the new aircraft, based on the company's Super Transporter design, will be called the "Airbus A390."

The plane is targeted for international service of flights of over 9,000 nautical miles (about 16,600 kilometers). The A390 will be powered by six Rolls-Royce turbofan engines developing thrusts of over 340,000lb each.

According to a company spokesman, Jean-Claude Randele, "The break-even point for operating the airplane will be at a passenger load of about 1760 passengers." Mr. Randele also noted, "Flights in 9,000 miles-plus range are expected to take 20 hours or longer so the A390 will include lots of amenities to help the passengers pass the time."

Read more: Airbus to build A390, a seven story airliner

Aircraft Industry: Airbus A380 wing flaw undetected for a decade

Airbus said efforts to lower the weight of the world’s largest airliner lay behind recent A380 wing cracks and pledged to learn from mistakes that lay dormant for a decade, as repair costs looked set to climb toward 500 million euros.

EADS subsidiary Airbus reported the cracks in January, leading to checks on the worldwide fleet of A380s, which authorities say are safe to fly.

Airbus chief executive Tom Enders said the discovery inside the superjumbo’s wings, where new lightweight carbon-composite materials and traditional metal meet, showed the difficulty of pushing technical boundaries in the ultra-competitive industry.

The A380 was designed in the early part of the last decade. At the time, the aircraft needed to lose weight, in part because of efforts to make it quieter, which required larger and heavier engine fans.
To drive down weight, a decision was made to mix metal and lightweight carbon components inside the wings, but engineers could not tell how this would stand up to extreme temperatures.

Read more: Airbus A380 wing flaw undetected for a decade

European safety agency orders global check of A380 wings

Europe's air safety authority has ordered checks on the entire global fleet of Airbus A380 superjumbo jets for cracks on parts inside the wings — extending a previous order to check nearly a third of the planes.

The European Aviation Safety Agency last month issued an airworthiness directive calling for "a detailed visual inspection" of the aircraft's "wing rib feet" — the metal brackets that connect the wing's ribs to its skin.

That order applied to the 20 planes that have flown the most. Spokesman Dominique Fouda said the agency was extending the checks to the entire fleet of 68, used by seven airlines.

For more: European safety agency orders global check of A380 wings - latimes.com

Airbus is king of the skies - by Mark Leftly

For the ninth successive year, Europe has emerged victorious in what has become one of the great transatlantic rivalries. Airbus, owned by the pan-European manufacturer EADS, had a record year for the industry in 2011, with 1,419 firm orders – worth around $140bn (£91bn) – for its aircraft, the best part of double that of Boeing.

The US group now has the lowest market share in the four-decade history of its great, often spiteful, competition with Airbus. Boeing will argue its jets have a higher average price tag, but even then EADS has a 54 per cent market share by value.

Announcing the order numbers in Hamburg yesterday, EADS chief executive Louis Gallois said: "We are more than a symbol of European integration. We are the part of Europe that works."

For more: Airbus is king of the skies - Business Analysis & Features - Business - The Independent

Aircraft Industry: New aircraft engines promise environmental benefits - by John Dean

Aircraft engine manufacturer CFM International has announced the 1,001th innovation in its new LEAP engine, which is being hailed as a major breakthrough in environmental benefits. The company, a joint venture between General Electric and Safran, said the 1,001th innovation was a blade for a fan that is so lightweight that it reduces the weight of the aircraft by 1,000 pounds.

Made of woven carbon fibres, rather than all-metal, the fan will, according to the company contribute half of the 15 per cent fuel efficiency improvement which the LEAP engine will bring about.
Also unveiling new innovations in aero engine design are Airbus and Rolls-Royce, who have just announced that they will jointly develop the A350-1000 aircraft with more powerful Trent XWB engines, offering more payload and a larger range. The most powerful engine ever developed for an Airbus plane, it is due to enter service in 2017.

Fabrice Bregier, Airbus' Chief Operating Officer, said that the engine would produce 25 per cent less fuel use than its nearest competitor and cuts in CO2 emissions.

For more: New aircraft engines promise environmental benefits | Business | The Earth Times

Airbus: No Major Malfunctions in Air France Crash - by ANDY PASZTOR And DANIEL MICHAELS

European plane maker Airbus, issuing the strongest signal yet that pilot errors may have led to the 2009 crash of an Air France jetliner, said data recorders recently pulled from the wreckage haven't revealed any obvious or major aircraft malfunctions before the jet's fatal dive.

In a bulletin sent to airlines Monday, Airbus said a preliminary readout of information about the Airbus A330 that crashed into the Atlantic Ocean two years ago hasn't prompted any "immediate recommendation" regarding the safety of the global A330 fleet.


The statement suggests that industry and government experts—led by France's air-crash investigation bureau— at this point are focusing more on human error and cockpit procedures than problems with specific airplane components or onboard computer systems.

For more: Airbus: No Major Malfunctions in Air France Crash - WSJ.com