EU envoy sees tanker as Boeing, Airbus WTO opening

WASHINGTON (Reuters) - The European Union's U.S. envoy urged EADS (EAD.PA) unit Airbus and U.S. rival Boeing Co (BA.N) on Monday to seize the opportunity presented by a controversial U.S. Air Force tanker contract to negotiate a settlement of a government subsidies dispute.

"Ideally we'd like to see this matter negotiated rather than litigated," John Bruton, ambassador to the United States for the European Commission, told Reuters in an interview.

"Maybe this clarifying event, if you like, will help them to come together," said the former Irish prime minister.

The U.S. Air Force last month awarded a major contract for aerial refueling tankers to Northrop Grumman (NOC.N) and EADS, parent of Airbus, instead of Boeing.

The European Union and the United States are pursuing competing complaints with the World Trade Organization over tens of billions of euros and dollars in state support provided to Boeing and Airbus.

(Reporting by Kevin Drawbaugh; Editing by Tim Dobbyn)