Airbus could be poised to gain a major coup again its arch rival Boeing after Ryanair suggested it is considering switching to European aircraft manufacturer for its next order. The low-cost carrier said it was considering ordering up to 300 aircraft, and that it would be foolish to disregard Airbus’s A320 aircraft, which could cut fuel bills by as much as 15 per cent.

The World Trade Organization is expected to rule today that huge subsidies paid to Boeing since the early 1990s are illegal. About $24bn of aid was masked as defence research, the EU claims, and comes a year after the WTO issued a similar ruling condemning Brussels for providing subsidies to Airbus.

Aviation commentators are predicting an end to the global economic slump as aircraft orders continue to accumulate at the Farnborough International Air Show. A resurgent Airbus performed well, recording orders for over 130 aircraft, while rival Boeing secured 103 orders worth $10 billion.

Boeing and Airbus have picked up a raft of new orders at Farnborough Airshow, in the strongest signal yet that the aviation industry to returning to good health. Boeing is currently leading the way with 130 orders, followed closely by Airbus with 122.

The World Trade Organisation has ruled subsidies from European governments to airplane manufacturer Airbus are illegal. The decision – the latest twist in a six year courtroom saga – was made public earlier and declares European launch aid subsidies used by Airbus to develop its commercial airplanes must end.

The Boeing-Airbus duopoly of the $1.6 trillion aircraft manufacturing market is set to face a formidable challenge from the BRIC economies over the next two decades. Young upstarts – including the likes of Brazil’s Embraer and China’s Comac – are launching aircraft that will erode the duopoly’s 90 percent share of the narrow-bodied market.