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Kansas senator alleges illegal subsidies at Embraer

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Well-known member
Oct 31, 2005
Source: AIN

Kansas Senator Alleges Illegal Subsidies at Embraer

Sen. Sam Brownback (R-Kan.) claims that general aviation, still struggling through a stalled economy, is facing “unfair international competition. Some foreign governments are heavily subsidizing–sometimes illegally–their domestic aircraft industries,” he said in a statement last week. He singled out Embraer in particular, claiming that the Brazilian OEM is now responsible for about 14 percent of all global sales of business aircraft. He noted that Embraer has been manufacturing business aircraft for only about seven years, adding that the company's growth “does not seem possible without heavy and creative government support across the board.” Brownback called for an analysis by the U.S. International Trade Commission to focus, in particular, on the business aircraft industry in the U.S., China, Brazil, Canada and Europe, examining the composition of the current industry and the factors of competition in the global industry. Embraer responded by saying its recent success with business aircraft is not the result of government subsidies. “Embraer did not use launch aid or any other illegal subsidies to develop its business jets portfolio or the equally successful E-Jet family of commercial aircraft [and it] did not use any public funds for either family,” the company said.
Definitely seems like "waaaaaaaah they make airplanes down there in Brazil with equal or better performance than those made in Wichita at a lower price point".

Never mind Embraer had/has a rather healthy airline revenue stream to help finance their non airliner-based executive jets like the Phenoms & Legacy 450/500.

Even Brownback must know the 450/500 could be the final nail in the Hawker coffin...
Canada raised all sorts of hell about this very thing when the ERJ starting taking their market share. I think there was a small trade war about a decade back over it (Canada was gonna tariff heck outta' Brazilian beef and so on). I'm sure all these manufacturers get subsidies of some form or another. Airbus did it. Then accused Boeing of getting it in the form of overpriced military contracts...

Well put on the Hawker. We had a lot of Hawker owners buy the 600. The smaller Legacy series will be even more attractive to that segment. It is going to be interesting to see how all this shakes out. End of day America's manufacturing base is being decimated.
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Brownback is a definite crybaby. And how many G-Whizzes does the US Gov't fly? How many Boeings does the US Gov't fly? Those Embraer 450/500s with their FBW and sidesticks will absolutely kick butt in a few years. How about the US step-up a notch and produce something worth buying - whoops, I guess I forgot about the Hawker Horizon (lame).

Yeah, I guess he would turn down a flight in a Legacy on a weekend golf outing with lobbyists. Yeah, right............. Quit crying dork.
Well, I suppose one could argue that tax beaks are subsidies as well, sure Kansas have given none of those to the manufacturers, right?

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