Boeing has asked for its tax breaks to be suspended amid an acrimonious and escalating trade war between the USA and the European Union, targeting its respective aircraft manufacturers, that threatens to play long-term havoc on aircraft deliveries on both continents. Lawmakers in the northwestern US state of Washington, where Boeing has a sizable presence, say they will introduce bills to stop giving the Chicago-headquartered plane-maker preferential tax incentives, dating back to 2003, until the USA and the European Union resolve their trade disputes. Boeing says it supports these changes. “Boeing applauds the actions today by Washington State leaders to introduce this legislation,” the company says in a statement on 19 February. “We fully support and have advocated for this action. When enacted, this legislation will resolve the sole finding against the United States in the long-running trade disputes between Europe and the United States over government support for the production of large commercial airplanes. This legislation demonstrates the commitment of Washington—and of the United States—to fair and rules-based trade, and to compliance with the WTO’s rulings.” The request is the latest move in an escalating trade dispute between US and European regulators. Last week, the Office of the US Trade Representative raised its tariffs on large European aircraft to 15%, up from the 10% levy implemented last October, in an ongoing disagreement over subsidies. At the centre of the ruling last October were EU subsidies for Boeing’s European rival Airbus, which the arbitrator heavily criticised as being “WTO-inconsistent”, and causing adverse effects to the USA. While the USTR was permitted to impose up to 100% tariffs on $7.5 billion of goods — including Airbus jets — the office said at the time it would initially impose 10% levies on new commercial aircraft of more than 30t, and 25% levies on other products such as Irish and Scotch whiskey, German machinery, and cheese. Airbus said earlier this week that it “deeply regrets” the increase, and warns that, as well as escalating the dispute, it creates “more instability” for those US carriers which are “already suffering from a shortage of aircraft”. The aerospace industry is waiting for a second case, currently before the WTO, to be resolved. It targets subsidies that Boeing received through various federal, state and local authorities, particularly in Washington and South Carolina as well as the city of Wichita, Kansas. European trade regulators promised a counterstrike to the USTR measures against European companies once a decision is made. The European Commission already drew up a list of US export targets collectively worth about $20 billion – far greater than the $7.5 billion of countermeasures granted by the WTO to the US government, which had been pursuing remedies for $11 billion of harm caused by EU subsidies. Airbus says it hopes the US Trade Representative will change its position once the World Trade Organization authorises these countermeasures – which are set to affect imports of the 777, 787 and 737 Max – around May-June. Washington State Governor Jay Inslee on Wednesday urged legislators to address the trade issues, “in order to avoid retaliatory tariffs that would damage not just our commercial aircraft industry, but other important Washington exports.” ”The potential negative impact of that is highlighted by the fact that Boeing has said it would like that tax incentive at least suspended until the issue is fully settled with the European Union,” Inslee says. He calls the bills in Congress “just a starting point”. In Wednesday’s statement, Boeing addresses “the billions of dollars of illegal ‘launch aid’ subsidies that have been provided to Airbus, which the WTO has repeatedly found to violate global trade rules, stand unresolved.” “Now is the time for Airbus and the European Union to finally come into compliance by ending illegal launch aid subsidies once and for all and addressing the harm they have caused the United States aerospace industry and its workers,” Boeing adds.

Source: Cirium

Belgium’s air navigation service, Skeyes, is to establish digital control towers at six airports in the country, including the main Brussels hub and the secondary Charleroi airport. Skeyes says its board has formally chosen to open a tender procedure which will also cover phased introduction of digital towers at Antwerp, Liege, Ostend and Kortrijk. The measure is the latest evidence of a shift towards increasing air traffic control efficiency by providing remote surveillance of airports – via camera technology – from a centralised location. Skeyes is aiming to issue a tender over the next few weeks to source a partner with which to pursue the programme. “Conditions and planning of implementation will be discussed with the operators of the airport infrastructure, taking into consideration the needs for renovation of the existing towers,” it states. Skeyes says the decision is part of a strategic plan agreed last year. “Digital towers are the future of air traffic management at airports and are being deployed all over Europe,” it says. “Just like other sectors, air traffic control is in the process of digitalisation. Skeyes wants to invest in the technology of the future to improve the quality of service provided to its customers.”

Source: Cirium

Singapore is rolling out a six-month support package for the country's aviation industry, with an aim of safeguarding Changi Airport's air connectivity, reducing business costs, and protecting jobs, amid the coronavirus outbreak that has affected airlines worldwide. The S$112 million ($80.5 million) package will comprise rebates on aircraft landing and parking charges, assistance to ground handling agents, and rental rebates for shops and cargo agents at Changi Airport, says Singapore's finance minister Heng Swee Keat while announcing the country's budget plan for fiscal 2020, which begins on 1 April. Airlines that had operated scheduled passenger flights between China and Singapore before the coronavirus outbreak will receive landing credits, Heng says, while those that continue to operate flights to China amid the ongoing outbreak will receive rebates on their landing charges. A full rebate on parking charges is being extended to all scheduled passenger flights to Singapore. In addition, a 10% landing charge rebate will also be given to all freighter carriers into Singapore, and applied to all scheduled passenger flights from Southeast Asia to Singapore. Singapore carriers that have obtained a new or renewed certificate of airworthiness for their aircraft from the Civil Aviation Authority of Singapore (CAAS) during fiscal year 2019 will receive a 50% rebate on regulatory fees. A planned 1% annual increase in landing, parking and aerobridge charges affecting all operators, which was due to start on 1 April, will also be waived off for a six-month period. The finance ministry adds the package, which is being co-funded by the government, Changi Airport Group, and the CAAS, “will provide immediate relief to affected companies during the [coronavirus] outbreak period”. The support package comes at a time when the coronavirus outbreak has led to a cancellation of more than 80% of scheduled flights between Singapore and China, says Singapore’s transport ministry. “There are now fewer than 80 services [to China] per week, compared with over 400 prior to the outbreak. Passenger traffic has dropped,” the ministry was quoted as saying in an 18 February report from Singaporean online news website Today. This has also led to a decline in traffic from other regions to Singapore, it adds. Hours before the budget plan was announced, Singapore Airlines said it will selectively cut flights to points outside of China for the next three months, including those to parts of Asia-Pacific, Europe, the Middle East, and the United States.


Source: Cirium