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 | Apr-22-2008Rivals Boeing, Airbus Team Up(topic overview) CONTENTS:
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The rare cooperation between the European and American giants was announced at the sidelines of the third aviation and environment summit in Geneva, where leading industry forces undertook a commitment to adopt several strategies against pollution. The agreement between the two manufacturers will see them working together to ensure global inter-operability in air traffic management to optimise efficiencies. Both manufacturers will also work with the United States and European governments to help them choose the most direct path to a modernised air traffic management system. "Airbus and Boeing are great competitors, and this has been a critical element that has sharpened our focus and efforts toward making aviation more efficient," said Scott Carson, who is president and chief executive of Boeing Commercial Airplanes. [1] GENEVA (Thomson Financial) - Rival aircraft manufacturers Airbus, a unit of EADS, and Boeing signed an agreement on Tuesday to work together to cut the impact of air traffic on the environment.[2] NEW YORK (Reuters) - Plane makers Boeing Co and Airbus said on Tuesday they signed an agreement to work together to modernize global air traffic management as part of an effort to cut aviation's impact on the environment.[3]
Airbus and Boeing have today signed an agreement to work more closely on environmental matters with an initial priority to focus on global interoperability of air traffic management (ATM ) ''' in particular their input to the Single European Sky ATM Research opnbrktSESARclsbrkt programme which is about to move into its next phase.[4]
Enders was speaking after signing an agreement with Scott Carson, CEO of Boeing Commercial Airplanes, to cooperate to improve global air traffic control systems. Both Enders and Carson told an earlier news conference the two companies would continue to compete aggressively in making and marketing planes. Just as they already cooperated on safety, the two now saw the potential to cooperate on the environment.[5] Scott Carson, president and CEO of Boeings Seattle-based commercial arm, said the rival plane makers would join forces to ensure that new air traffic systems being developed in Europe and the United States are fully interoperable.[6]
GENEVA (Reuters) - European planemaker Airbus does not expect an early resolution of its disputes about state aid with U.S. rival Boeing, even though the two will work together to promote better air traffic control, it said on Tuesday.[5] The European Union and the United States are pursuing competing complaints at the World Trade Organisation (WTO) over tens of billions of euros and dollars in state support provided to Boeing (BA.N: Quote, Profile, Research ) and Airbus, a unit of EADS (EAD.PA: Quote, Profile, Research ). Airbus CEO Tom Enders said that while he expects the WTO to rule on the two cases later this year, a negotiated settlement with Boeing was unlikely before then. Airbus had made a couple of approaches to suggest negotiations but they had not been fruitful, he said. "I still believe that a really sustainable solution has to be negotiated," he told Reuters. Relations were further strained when the U.S. Air Force awarded a $35 billion contract earlier this year for aerial refueling tankers to Northrop Grumman Corp. (NOC.N: Quote, Profile, Research ) and EADS rather than Boeing.[5] Boeing and Airbus were among 16 companies and trade bodies that signed a declaration aimed at carbon-free air travel in the future. The declaration does not give a date for this target to be met. Airbus earlier quashed speculation that it might seek to settle commercial differences with Boeing that have led the U.S. and EU to fight a protracted legal battle on their behalf at the World Trade Organization. Enders told reporters that Airbus will not seek a permanent settlement with Boeing on the issue of government support until after the global trade body has delivered its ruling in the dispute, expected later this year.[6]
The EU counters that Boeing receives U.S. federal and state tax breaks, development funding and outright grants as well as vast amounts of hidden support in military contracts. Asked whether he sees a role for governments in supporting the development of cleaner aviation technologies even to the extent of asking them for state-aid to pay for research and lower the price tag of new planes Enders said both companies were already investing heavily in research themselves.[6]
The battle between Washington and Brussels is the biggest commercial dispute in the WTOs 13-year history. It is estimated to be worth US$3 trillion (2 trillion) over the next two decades. The U.S. and EU have asked the WTO to rule in their favor in the dispute in which their governments both accuse each other of providing billions of dollars of unfair subsidies to their manufacturers.[6]
The United States says EU subsidies have enabled Airbus to capture long-standing Boeing customers.[6]
Scott Carson of Boeing and Tom Enders of Airbus, a unit of Europe's EADS, signed the agreement on the sidelines of the third Aviation and Environmental Summit in Geneva.[3] CEOs Tom Enders and Scott Carson formally signed the deal on the sidelines of the third Aviation & Environment Summit in Geneva. The ATM activity is the primary element of a three-pronged programme which also includes a commitment to continuing competition in developing new products while at the same time working to align their positions on environmental issues '''where appropriate'''.[4]

At an aviation environment conference in Geneva, top company executives signed an agreement under which Boeing and Airbus will join forces to help suppliers and governments modernize and streamline air-traffic management systems. They also pledged to work closer in the fields of alternative aviation fuel sources. [7]
GENEVA -- Putting aside their intense rivalry for a moment, plane makers Boeing Co. and Airbus Tuesday said they would cooperate on a new initiative designed to improve the environmental performance of the air transport industry.[7] GENEVA (AP) - Boeing and Airbus said Tuesday they will cooperate to support the development of the next generation of air traffic systems in an effort to improve fuel efficiency and eliminate congestion.[8]

SESAR moves from the current definition phase into the development phase in mid-2008 and Airbus senior VP ATM Eric Stefanello said at the signing ceremony: '''Now'''we will help the European Commission develop some solutions. He points out that a European capacity crisis is currently predicted to come to a head in 2012 with serious consequences if nothing is done, and he notes that France is determined to address ATM issues when it takes over the European Union presidency in two months time. '''They are very, very aware of this problem and want to do something about it,''' he says. Stefanello says key SESAR decisions will be taken over the next two years after which it is expected to yield its first '''concrete results''' in 2012 and to deliver its final output in 2020 by when it is intended to deliver fuel efficiency gains of around 10%. Carson said: '''Competition among the manufacturers is critical and let me assure you that this not under threat from what you see here today. [4]
The rare cooperation between the European and U.S. giants was announced at the third aviation and environment summit in Geneva, where leading industry forces undertook to adopt several strategies against pollution. [email protected] Copyright Thomson Financial News Limited 2008.[9] "You can rest assured that we will continue to compete aggressively," Carson told reporters on the sidelines of an aviation industry meeting in Geneva.[6] The cooperation will be extended to other areas of the aviation industry "where appropriate," Carson said, but added that the fierce rivalry that has characterized the two companies relationship would continue.[6]

"We need to cooperate where possible for the good of the environment," Airbus chief executive Tom Enders said. [6]
SOURCES
1. AFP: Airbus, Boeing sign accord to cut air traffic impact on environment 2. Airbus, Boeing sign accord to cut air traffic impact on environment | Latest News | News | Hemscott 3. Boeing, Airbus agree to work on air traffic issues | Markets | Markets News | Reuters 4. Airbus and Boeing sign pact on environmental collaboration 5. Airbus sees no negotiated settlement with Boeing | Reuters 6. Boeing, Airbus agree to support development of next generation air traffic systems - International Herald Tribune 7. Free Preview - WSJ.com 8. Boeing, Airbus agree to support development of next generation air traffic systems 9. Airbus, Boeing sign accord to cut air traffic impact on environment

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