Leading airlines have called on Europe and the United States to cap export credits on the sale of passenger jets at 20 percent in the latest ripple of a growing spat over multi-billion-dollar subsidies. US and European airlines say their Gulf rivals get subsidies and export credits that allow them to grow at a breakneck pace and take market share.
But Dubai is leading a vigorous defence against the charges and the head of its airport, which is home to Emirates, hit back on Wednesday with suggestions that the real problem for Western airlines was their own governments' "parasitic" taxes.
The proposal for a financing cap comes in a letter by 24 airlines, including the world's largest carriers such as Delta and Lufthansa, ahead of international talks on the rules for financing Boeing and Airbus jets. Airlines in the countries where Airbus and Boeing planes are made say they are unfairly locked out of a system of export aid, which reduces costs for Emirates and others.
The export credits are provided by the United States for Boeing planes and by France, Germany, Spain or Britain for Airbus, which is owned by European aerospace group EADS. Airlines in those countries cannot get export credits even when US airlines are importing Airbus planes or Boeing jets go to airlines based in the four nations which are home to Airbus. Governments will discuss the issue at the Organisation for Economic Co-operation and Development on October 20.