Abstract In the past, the discourse on State subsidies involving commercial aircraft was dominated by allegations of the support granted to aircraft manufacturers Airbus and Boeing, and the respective disputes brought before the Dispute Settlement Body of the World Trade Organization (WTO). While the focus has until now been narrowly confined to Airbus and Boeing and, thus, the European Union (EU) and the USA and the competition between the two, new large commercial aircraft manufacturers have entered the market—notably, those based in China, Russia, and Japan. This article examines the semi-recent ‘truce’ between Airbus and Boeing and what has followed—namely, the introduction of State investment mechanisms and strategies in the EU, USA, and China for commercial airlines seeking to ‘green’ their aircraft fleets. Against the backdrop of airlines purchasing aircraft and operating services on a global market, this article exposes the lack of harmonization in approach to State subsidies globally and questions the extent to which the State and the market—and, indeed, States or groups of States—perform a balancing act in aircraft financing, an area fraught with complex political and commercial realities.
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