Judge Orders Ex-Im Loan Guarantees Can Proceed
January 19, 2012
Quick links+
A U.S. District Court Judge rejected an attempt by Delta Airlines CEO Richard Anderson to block the U.S. Export-Import Bank from providing Air India with $3.4 billion in loan guarantees needed to secure the purchase of 30 U.S.-built Boeing aircraft.
The ruling is a victory for U.S. aerospace workers, the American economy and the U.S. Export-Import Bank, which provides loan guarantees (rather than direct loans) to foreign companies that commit to purchasing American-made goods and services.
In his ruling, U.S. District Court Judge James E. Boasberg declared there was no evidence that Delta would suffer significant financial harm if Air India begins taking delivery of Boeing aircraft.
The lawsuit was filed by Airlines for America (formerly Air Transport Association ATA) the airline trade group where Anderson serves as Chairman of the Board of Directors.
Several U.S. airlines took the unusual step of declaring they would not join in the lawsuit engineered by Anderson, including United Continental Holdings Inc., and AMR, parent company of American Airlines.
While the judge rejected the notion that Delta would suffer significant financial harm from the sale of Boeing aircraft to Air India, it is widely speculated that withholding loan guarantees for the purchase of Boeing aircraft would funnel additional business to Airbus.
