Airbus criticises White House on Boeing deal

AIRBUS HAS accused the White House of derailing open competition by helping Boeing win a record aircraft deal in Indonesia as details emerged of a behind-the-scenes struggle over jobs and aircraft sales worth almost $22 billion (€16.4 billion).

The European aircraft maker’s sales chief said lobbying over the deal on behalf of US president Barack Obama had demonstrated double standards on free-market competition amid an ongoing row between Washington and Europe over aircraft subsidies.

“There’s only one superpower in the world and I think we know it isn’t France; it is probably represented by President Obama,” John Leahy said at a briefing in Washington.

“When he starts making headlines that he is selling airplanes and how that wouldn’t happen without his personal involvement, we are seeing economic distortion and we shouldn’t be talking about free and open level playing fields for trade around the world if the US pulls stuff like that.”

Last month, Mr Obama showcased an order for 230 aircraft from Indonesian budget carrier Lion Air worth $21.7 billion at list prices, the largest commercial deal in Boeing’s history.

That came months after Airbus, a subsidiary of Eads, pulled off a dramatic coup by landing its own largest order in volume terms for 260 aircraft from American Airlines, toppling an exclusive Boeing customer.

The move prompted Boeing to alter its strategy and match Airbus by refreshing its bestselling 737 model with new engines.

Attending the Lion Air signing ceremony during a nine-day Pacific tour in mid-November, Mr Obama called the deal a “win-win” for US workers and Asian consumers, adding that his administration and the Ex-Im Bank played a key role in facilitating the sale.

The White House said it would support 110,000 industrial US jobs, addressing a key issue in next year’s elections.

Analysts say a deal between Lion Air and Airbus would have been a surprise since it has an all-Boeing fleet and Europe’s aircraft maker has previously tried and failed to win its business.

However Mr Leahy said Airbus might have won a deal if it had not been for political intervention. – (Reuters)