July 19 (Bloomberg) -- Boeing Co. and Airbus, the world's leading makers of big airliners, can't afford to start a trade war because they share so many contractors and customers that a showdown would damage the whole industry, the Wall Street Journal reported, citing executives.

Both companies complain that the other receives government subsidies and argue that they would have a strong case before the World Trade Organization, the newspaper said.

U.S. suppliers Goodrich Corp., Honeywell International Inc. and Eaton Corp. do a lot of work for both Airbus and Boeing, and British companies including GKN Plc and Smiths Group Plc are increasing the work they do for Boeing, the Journal said.

The industry ``is now totally subject to the force of globalization,'' said Jean-Louis Gergorin, the director of strategy at the European Aeronautic, Defense & Space Co., which owns 80 percent of Airbus. That creates a ``disincentive to any kind of transatlantic trade war,'' the paper cited him as saying.

(Wall Street Journal Europe 7-19 A1)

To contact the reporter on this story: Toby Anderson in London at tanderson7@bloomberg.net.

Last Updated: July 19, 2004 01:01 EDT