Loading

ATA's lawsuit against US Ex-Im Bank for Air India loan begins effort on tightening loan conditions

The Air Transport Association of America (ATA), in an unusual move, filed suit against the Export-Import Bank of the United States (Ex-Im Bank) on 16-Nov-2011 to halt a pending deal for USD3.4 billion in loan guarantees for aircraft financing to Air India. The ATA has alleged the Ex-Im Bank "fails to meet statutory requirements, including consideration of the impact on the US airline industry and US airline jobs”.

In an earlier letter to Ex-Im Bank chairman, Fred Hochberg (who is also being sued by ATA) in early Nov-2011, ATA noted Air India’s financial and management troubles, warning that the Ex-Im Bank was disregarding the obligations to “protect the public coffers” by providing loan guarantees to a “credit-risky” company. ATA said Air India’s losses and management troubles should disqualify it from financing, describing the Indian flag carrier as “one of the shakiest, riskiest and most poorly run airlines in the world”. ATA added that the carrier’s poor financial status should disqualify it from such US assistance.

Become a CAPA Member to access Analysis Reports

This CAPA Premium Analysis Report is 3,198 words.
Become a CAPA Member

Our Analysis Reports are only available to CAPA Members. CAPA Membership provides exclusive access to in-depth insights on the latest developments in the aviation and travel industry, developed by our team of dedicated analysts located in Europe, North America, Asia and Australia.

Each report offers a fresh perspective on the latest industry trends and is available online or via the CAPA mobile app, with customisable alerts to help you stay informed and identify new business opportunities.

CAPA Membership also provides access to our full suite of tools, including a tailored selection of more than 400 News Briefs every weekday and comprehensive data and analysis on thousands of companies around the world.