c-upi

PARIS, Jan. 13 (UPI) -- Airbus is seeking about $1.34
billion in new aid from four European nations to help it build an
airliner that can compete with Boeing's 7E7 aircraft.
Although Airbus initially appeared to ignore the competitive
threat posed by the Chicago company's ultra-efficient new aircraft,
set for 2008 delivery, the European company said last month it would
build a new jet to challenge the so-called Dreamliner, the Financial
Times reported Thursday.
Airbus' chief executive said Wednesday he was asking France,
Germany, Britain and Spain to subsidize development of the proposed
A350, tentatively set for 2010 delivery.
U.S. officials, who only the day before had agreed with
their EU counterparts to step back from a trade war over such
aircraft subsidies, were livid.
"The objective on which we agreed is to secure a
comprehensive agreement to end subsidies -- and I repeat, end," said
Richard Mills, spokesman for U.S. trade representative Robert
Zoellick.
"The U.S. will not agree to permit new aircraft subsidies
that are illegal under World Trade Organization rules, and that
certainly covers launch aid."