Article: The jumbo war; Airbus and Boeing.

THE skirmish between America and Europe over subsidies to Airbus Industrie, Europe's aircraft-making consortium, is beginning to turn nasty. America has proposed 11th-hour talks with the EC before it carries out its threat to ask the world's trade watchdog, the General Agreement on Tariffs and Trade (GATT), to ban more subsidies for Airbus.

Why is America suddenly taking such a hard line in a dispute that has been simmering for five years? Previously both sides were reluctant to have a showdown-and certainly did not want to risk a trade war that could end with America slapping tariffs on Airbuses and Europe retaliating against Boeing and McDonnell Douglas jets.

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