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Airlines fight banks over loan to Air India

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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.

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Written by Arhopala Bazaloides

February 21, 2012 at 5:00 am

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