5-Oct-2010 12:34 PM

Boeing and ATA in conflict over aircraft export subsidies

Boeing sent a letter to members of the US Congress, responding to criticisms by the US Air Transport Association (ATA) of aircraft export subsidies for Boeing aircraft provided by the US Export-Import Bank to non-US carriers (Wall Street Journal, 04-Oct-2010). The ATA’s criticisms stated "undisciplined competition" among export-credit agencies to support aircraft sales is contributing to excess airline capacity, "causing direct and substantial competitive harm to US airlines". Boeing’s response is that the ATA's claims are "without merit" and the proposal to cut US export subsidies "would seriously jeopardise the US aerospace industry's ability to compete" internationally. Boeing stated its production is driven by airlines' passenger demand, not government credits.

Boeing: "We normally don't take issue with our customers' views, but given the vital importance of export credit financing to the US aerospace industry, we could not let ATA's assertions go unchallenged," Ted Austel, VP for Legislative and Regulatory Affairs. Source: Wall Street Journal, 04-Oct-2010.