Boeing, Airbus challenge preference for regional jets

03/26/2010 | Bloomberg Businessweek

Under threat by new entrants in the narrow-body plane market, Boeing Co. and Airbus are seeking new limitations on subsidies that would effectively remove the distinction between regional jets and large jets. The move comes as Canada's Bombardier introduces its larger CSeries jet, which it classifies as a regional aircraft despite its size. Regional jets face fewer restrictions on government-guaranteed loans, an advantage that Boeing and Airbus would like to see erased. "We want a one-size-fits-all agreement," says an Airbus executive. "You can't have one claiming it's a regional plane and another saying it's a big jet, when they market them for serving the same market range."

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