WTO to probe Airbus, Boeing subsidies

Geneva The World Trade Organization set up panels Wednesday to investigate allegedly illegal subsidies paid by the EU and the United States to airplane makers Airbus and Boeing Co., although both sides say they are still willing to try to reach a negotiated settlement.

The creation of the panels restarts what could become the costliest and highest-profile case in the 10-year history of the WTO and one that could result in higher ticket prices for plane travelers.

The WTO’s dispute settlement body agreed to set up the panels after the United States and European Union both went forward with a second request, a month after each side blocked the other in routine bureaucratic maneuvering.

Washington filed a complaint at the 148-member global trade body in May about plans for European government aid to fund the development of Airbus’ A350 – a midsize jet aimed at competing with Boeing’s 787 Dreamliner. Airbus is a joint venture of Netherlands-based EADS NV, with an 80 percent stake, and U.K.-based BAE Systems PLC, which owns 20 percent.

FTC targets illegal pornographic e-mails

Washington Federal regulators accused seven companies Wednesday of hiring others to send illegal e-mails with pornographic messages to tempt consumers to visit adult Internet sites.

The government said four of the firms already agreed to pay nearly $1.2 million to settle the charges, making it among the most aggressive government crackdowns on pornographic e-mail operations.

The Federal Trade Commission described the practice as “electronic flashing” and said at least some of the unwanted e-mails were sent to children. The threat of children unwittingly receiving smut in their inboxes helped drive the U.S. government to impose restrictions on sending commercial e-mails last year.

The FTC said the messages were not prominently marked “sexually explicit,” did not include instructions for consumers to block future e-mails and did not include a postal address, all required under federal law.

Northwest, mechanics at an impasse

Minneapolis Mediators declared an impasse in negotiations between Northwest Airlines Corp. and its mechanics on Wednesday, beginning a 30-day cooling-off period that could end with a strike.

Jeff Mathews, contract coordinator for the Aircraft Mechanics Fraternal Association, said the 30-day period ends at 12:01 a.m. EDT on Aug. 20. After that, federal labor law says mechanics can strike or Northwest can impose new wage rules. Northwest, the nation’s fourth-largest airline, has pledged to keep flying if there’s a strike.