Concern Voiced Over Boeing'S Exclusive Deals

French socialist Prime Minister Lionel Jospin said on Saturday that exclusive supply agreements struck between the American major Boeing Co mpany and three major American airlines were "very worrying".

Seattle-based Boeing has agreed to be sole aircraft supplier to AMR Corp's American Airlines, Continental and Delta Air Lines, sparking anger at European arch rival Airbus Industrie.

"The recent appearance of unusual commercial practices in the American market -- I am thinking particularly of exclusive contracts signed by Boeing for very long periods with three of the biggest American companies -- is in this respect very worrying," said Prime Minister Lionel JospinJospin .

 

"Competition has to be fair and open, and it is up to us, in the European framework, to watch over it carefully," he said.

"That is why the merger between the two of the principal world manufacturers, Boeing and McDonnell Douglas Corp, deserves attentive examination. I note with interest that inquiries have been opened by both the European Commission and the United States Federal Trade Commission.

Boeing has said the United States airlines had asked it for the exclusive terms and that they were due to renew their fleets.

Airbus believes the Boeing-McDonnell Douglas merger is aimed at killing it off in the long run.

Airbus is a consortium made up of French state-owned company Aerospatiale, British Aerospace, Daimler-Benz Aerospace, a unit of car manufacturer Daimler-Benz AG, and Construcciones Aeronauticas SA (CASA) of Spain.