Karela Fry

Just another WordPress.com weblog

Airlines fight banks over loan to Air India

leave a comment »

HT reported:

The US airline industry has sued the Export Import Bank (Exim) alleging that its financial support to Air India will harm the American airlines.

In a revised complaint filed before a US court last Friday, the Air Transport Association of America, Delta Air Line and Air Line Pilots’ Association International, alleged that Exim Bank’s decision to provide a loan guarantee of $3.4 billion to Air India to help it buy 30 aircraft from Boeing, would badly affect US airlines, Delta in particular.

Without the financial support from Exim Bank, Air India would not have purchased these aircraft, they said.

ET extended the story:

Air India on Monday said it is not a party in the case filed against the American Export Import Bank (ExIm) for giving loan guarantees of $3.3 billion to the carrier for buying 27 aircraft from Boeing.

Air India also refuted the claims of the Air Transport Association of America, the airlines’ lobby, saying the 27 aircraft bought with the loan are yet to be inducted. Air India said all its India-US flights were operated on Boeing 777s for which it did not seek the loan from the ExIm bank.

One can be quite certain that these larger aircraft are not the for the use of Praful Patel’s family.


Written by Arhopala Bazaloides

February 21, 2012 at 5:00 am

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: