Airbus has agreed with the governments of France and Spain to amend A350 Refundable Investment (RLI) contracts. This is a step taken to end the ongoing dispute over the US tariffs after the 16-year-long case with the World Trade Organization (WTO).
The tariffs applied by the US Trade Representative (USTR) are currently harming the entire aviation industry and American airlines and cause a very difficult environment due to Covid-19. Therefore, Airbus decided to take a last step to eliminate this controversial issue, but changed the French and Spanish contracts taking into account the WTO's appropriate interest rate and risk assessment criteria.
WTO has already decided that the Refundable Investment (RLI) contract is a viable tool for governments to partner with the industry by sharing investment risks. With this last move, Airbus evaluates itself in full compliance with all WTO decisions.
“We have fully met all WTO requirements,” said Airbus CEO Guillaume Faury. These additional changes to the A350 RLIs show that Airbus doesn't have any unexpected stones left to find a way to the solution. This is a clear support signal to those who suffer from the serious impact of the tariffs implemented by USTR, especially at a time when industries are affected by the consequences of the Covid-19 crisis. ” said.
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