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US Carriers Unhappy With American Aid To Air India  
User currently offlineTeamInTheSky From United States of America, joined Apr 2011, 535 posts, RR: 0
Posted (2 years 10 months 1 week 5 days 6 hours ago) and read 3188 times:

Full Story Here:
http://timesofindia.indiatimes.com/b...Air-India/articleshow/10729243.cms

Quoting Article:

NEW YORK: Calling Air India "one of the most poorly-run airlines in the world", American carriers have opposed the US Exim Bank's USD 3.4 billion support to it to buy Boeing 787 Dreamliners.


We were wondering how AI was going to pay for their planes. I am pretty surprised that it is actually the US government paying for a good portion (if not all of them). If AI were to declare bankruptcy, do these planes become property of the US Government?

Regards,

TS


Since 2010: DL, KL, AF, WX, IG, FR , FL, U2, AK, BA, OK, UX, VS, VN, K6
5 replies: All unread, jump to last
 
User currently offlineg500 From United States of America, joined Oct 2011, 970 posts, RR: 0
Reply 1, posted (2 years 10 months 1 week 5 days 5 hours ago) and read 3106 times:
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Quoting TeamInTheSky (Thread starter):
We were wondering how AI was going to pay for their planes. I am pretty surprised that it is actually the US government paying for a good portion (if not all of them). If AI were to declare bankruptcy, do these planes become property of the US Government?

First of all is not just India, its everybody. In this case it happens to be Air India. The U.S airlines are crying foul because the U.S government loans money to foreing carriers under the condition they buy Boeing....

I think its a good thing. Boeing is our largest exporter, its important to do this, Boeing creates a lot of jobs. Second the Europeans do the same for EADS (Airbus)


User currently offlineTeamInTheSky From United States of America, joined Apr 2011, 535 posts, RR: 0
Reply 2, posted (2 years 10 months 1 week 5 days 5 hours ago) and read 3105 times:

Quoting g500 (Reply 1):
I think its a good thing. Boeing is our largest exporter, its important to do this, Boeing creates a lot of jobs. Second the Europeans do the same for EADS (Airbus)

Again though, in the financial shape of AI, is it really prudent to be loaning them a couple of billion dollars? What happens if they are unable to pay?



Since 2010: DL, KL, AF, WX, IG, FR , FL, U2, AK, BA, OK, UX, VS, VN, K6
User currently offlineLufthansa From Christmas Island, joined May 1999, 3213 posts, RR: 10
Reply 3, posted (2 years 10 months 1 week 5 days 5 hours ago) and read 2997 times:

Quoting TeamInTheSky (Reply 2):

Again though, in the financial shape of AI, is it really prudent to be loaning them a couple of billion dollars? What happens if they are unable to pay?

The aircraft are repossessed. Given that the asset can then easily be placed with a new operator it's not as bigger risk as it may look. The unfair thing for the US carriers is they can't access this finance source. But they can access it from Airbus (and the euro carriers can't).


User currently offlineYTZ From Canada, joined Jun 2009, 2015 posts, RR: 24
Reply 4, posted (2 years 10 months 1 week 5 days 4 hours ago) and read 2858 times:

Why single out AI for this? If the US carriers want subsidized loans they can buy Airbus.

And this aid to Boeing, not to AI. They could always eliminate the loans and then watch Boeing struggle to sell planes overseas.


User currently offlinepar13del From Bahamas, joined Dec 2005, 7232 posts, RR: 8
Reply 5, posted (2 years 10 months 1 week 5 days 3 hours ago) and read 2717 times:

Quoting g500 (Reply 1):
The U.S airlines are crying foul because the U.S government loans money to foreing carriers under the condition they buy Boeing....
Quoting YTZ (Reply 4):
If the US carriers want subsidized loans they can buy Airbus.

  

Quoting YTZ (Reply 4):
And this aid to Boeing, not to AI.

In principle it is aid to US industry, however, in time this type activity will cease as more and more companies become global, they cannot have their cake and eat it too. Example, since the 787 has so much out-sourcing, can the US government really claim to be supporting US workers and industries by assisting with the purchases, the lines are being blurred, better to have the government stay out of the globalized market and single focus on industries which can be more localized around their voting public versus their political financial contributors who are usually invested world over.


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