A group of 24 airlines from the U.S. and Europe have allied to oppose export credit agency loan guarantees to foreign customers buying Boeing and Airbus airplanes. On its face, their argument seems logical: no longer do many of the airlines and lessors who get export credit agency support need government-backed loans. But to undo the status quo would take a mighty effort on the part of governments that haven’t shown an inclination to slaughter what to the world’s two major airframe makers has become a sacred cow.
The alliance, which includes Air France, EasyJet, Lufthansa, Virgin Atlantic, American Airlines, Delta Air Lines, United Airlines, JetBlue and Southwest Airlines, sent a letter to their respective governments qualifying their joint position on a matter that pits the manufacturers against their own customers in many cases. The alliance of airlines argues that export-credit-agency-backed loans to carriers that readily qualify for commercial credit without the help of government support creates an uneven playing field in an increasingly global competitive arena.
