The World Trade Organization has announced that it will not rule on the European counter claim alleging improper US support for Boeing’s large aircraft business until mid-September, pushing it closer to the Air Force’s decision on the winner of the KC-X tanker contract. The WTO’s announcement came on the heels of the recent public release of its ruling in the US case against Europe on large aircraft subsidies for Airbus. The WTO ruled that Airbus, a subsidiary of EADS, did receive some improper subsidies. Even though Sen. Patty Murray, D-Wash., declared victory in the WTO ruling against the Europeans, saying it “puts any doubts to rest.” the impact of the decision is anything but clear for KC-X. That’s because the first WTO ruling may be appealed, the countersuit is still pending, and, so far, the Pentagon has kept the trade dispute out of KC-X. (Murray release) (See also Wall Street Journal report.)
The Air Force and Boeing agreed to a nearly $2.4 billion contract for a new lot of KC-46 aerial tankers on Nov. 21. The deal, announced by the Pentagon, is for 15 new aircraft in Lot 11 at a cost of $2.389 billion—some $159 million per tail.