Ex-Im Bank, Delta Offer Differing Views Of Appeals Court Ruling | Aero-News Network
Aero-News Network
RSS icon RSS feed
podcast icon MP3 podcast
Subscribe Aero-News e-mail Newsletter Subscribe

Airborne Unlimited -- Recent Daily Episodes

Episode Date

Monday

Tuesday

Wednesday

Thursday

Friday

Airborne On ANN

Airborne 08.22.16

Airborne 08.23.16

Airborne 08.24.16

Airborne 08.25.16

Airborne 08.26.16

Airborne Hi-Def On YouTube

Airborne 08.22.16

Airborne 08.23.16

Airborne 08.24.16

Airborne 08.25.16

Airborne 08.26.16

Tweet Us The Coolest Things You See @OSH16!
#OSH16Coolest!

It's Alive!: AirVenture 2016 Innovation Preview on Vimeo!

It's Alive!: AirVenture 2016 Innovation Preview on YouTube!

Thu, Jun 20, 2013

Ex-Im Bank, Delta Offer Differing Views Of Appeals Court Ruling

Airline Had Requested That Court Invalidate Ex-Im Bank Air India Transactions

The Export-Import bank of the United States (Ex-Im Bank) and Delta Airlines have different takes on an appeals court ruling on the bank's support for sale of aircraft to Air India, with both sides saying the ruling is in their favor.

Delta alleged in a lawsuit that Ex-Im failed to consider the economic impact of its loan guarantees for the purchase of wide-bodied Boeing aircraft by Air India.  Boeing, which by dollar volume is the number one exporting company in the U.S., employs about 85,000 American workers in the manufacturing of its commercial aircraft.

The U.S. Court of Appeals in Washington, DC on Tuesday rejected a request by Delta Air Lines to vacate the Ex-Im Bank's support of sales of U.S.-manufactured aircraft to Air India. The Court has asked Ex-Im Bank to further explain its financing decision for the Air India transactions, but the Court chose to leave undisturbed the Bank's financing of the Air India transaction and did not question the Bank's flexibility in carrying out its statutory mandate. The decision comes following the appeal by plaintiffs Delta Airlines, Inc. and the Airline Pilots Association of a lower court decision in July 2012 that determined that Ex-Im Bank properly approved financing for purchases of certain Boeing aircraft by Air India.

"I am gratified by the court's recognition that these transactions should not be impeded by litigation. The Bank maintains significant flexibility in complying with its statutory mandates and its effort to support American jobs," said Fred P. Hochberg, chairman and president of Ex-Im Bank.  "This represents a victory for tens of thousands of American aerospace workers."

But Delta also couched the ruling as a win. "Today the D.C. Circuit Court of Appeals upheld a challenge by Delta Air Lines and the Air Line Pilots Association to the Export-Import Bank's issuance of loan guarantees for the sale of 30 long-range, widebody aircraft to Air India. Delta and ALPA had argued that the subsidies would have harmful effects on U.S. airlines and their employees," Delta said in a prepared statement. "The federal appeals court held that, before issuing its loan guarantees to Air India, the Bank was required by its governing statute to consider the effects that the loan guarantees would have on U.S. industries and U.S. jobs.

"According to the court, the Bank failed to explain its exclusion of aircraft transactions from economic impact review. The court also rejected the Bank's attempt to suggest that it was immune from judicial review. The Bank now will be required to take the complaints of industry participants seriously before proceeding with potentially harmful subsidies to foreign airlines."

Delta, along with the Air Line Pilots Association, has raised concerns over the past several years about the impact of the Bank's lending on U.S. airlines and their employees. Export-Import financing for widebody international aircraft puts thousands of U.S. airline jobs at risk by subsidizing foreign carriers that compete directly with Delta and other U.S. airlines on key international routes.

FMI: www.exim.gov, www.delta.com

Advertisement

More News

Airborne 08.26.16: Citation Longitude Update, Falcon 9 Display, N Shore Heli Rte

Also: Aerosim Scholarship, Santa Monica Nonsense, Marine One, UAV Developer Kit, FAA Penalty, F-35 Weapons Test, Coastal Helicopters The Cessna Citation Longitude moves closer to i>[...]

AeroSports Update: European Aerobatic Champion Determined

Aerobatics Legend, Mikhail Mamistov, Takes Record Fifth FAI European Aerobatic Championship The World Air Sports Federation (FAI) European Aerobatic Championship (EAC) competition >[...]

Aero-News: Quote of the Day (08.29.16)

"We, as an industry, can do better... and while its not an infraction on the scale of those we've documented recently with Icon and other bad actors, it apparently created enough d>[...]

Cheesy--Or Just Plain Dishonest? FlyQ Email Suggests ForeFlight Offer--But Isn't

Recent E-Mailing Suggests One Product... But Is Actually Something Else Altogether ANN has made much of the fact that we, as a community, need to be able to depend on one another a>[...]

Another Tough Weekend For Airshows... Two Pilots Lost

Accidents in Oregon and China Take Pilot's Lives It's been a lousy weekend to be an aviation journalist as we document the tragic loss of two well-known pilots in two separate airs>[...]

blog comments powered by Disqus



Advertisement

Advertisement

Podcasts

Advertisement

© 2007 - 2016 Web Development & Design by Pauli Systems, LC