Published on : Friday, June 27, 2014
Delta CEO Richard Anderson testified this morning before the U.S. House Financial Services Committee regarding the reauthorization of the Export-Import Bank of the United States.
Mr. Anderson’s testimony focused on the harmful effect the Bank’s loan guarantees for widebody aircraft have on U.S. airlines and their employees. As part of his testimony, Mr. Anderson provided an illustration, based on two recent financings, that shows how one of Delta’s most significant international competitors can save over $20 million using Ex-Im financing. This subsidy amounts to our foreign competitor getting a free additional widebody plane for every eight new planes it buys.
Delta supports substantial and effective reform to the Bank’s charter to ensure U.S. airlines and our employees are not put at a further competitive disadvantage through U.S. government subsidies to foreign airlines. Delta’s concerns are specific to ExIm’s continued financing at better-than-market rates of widebody aircraft to airlines that are creditworthy and/or receive subsidies from their home country.
Any reauthorization of the Bank must – at minimum – contain reforms to address this issue as well as address transparency deficiencies and a failure to conduct required impact analyses. For airlines that are not screened out on the basis of creditworthiness, state ownership, or state support, Delta recommends ExIm be required to (1) conduct real analysis on the benefits and harms of its widebody financings on US airlines and our employees and (2) provide complete transparency on the financings in which the bank is participating.
Source:-Delta Airlines
Tags: Airline News, Delta CEO Richard Anderson testifies on Export-Import Bank reauthorization
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