The news Tuesday that Airbus is expected to receive $18.2 billion from European governments to help develop the A350 should bring another round of protests from those opposed to Airbus winning the tanker contract. Government subsidies were one of the arguments used by Boeing supporters when EADS, the parent of Airbus, and Northrop-Grumman were awarded the tanker contract. They argued that Boeing is at a disadvantage because Airbus is subsidized by European governments. EADS CEO Louis Gallois (a name that just rolls off the tongue) argues, of course, that Boeing also is subsidized, mentioning specifically money the company receives from the state of Kansas.
By the way, the GAO is expected to release its decision on Boeing’s protest over the contract by the middle of June. No matter how the GAO rules, this issue is a long way from over.