US ATA and nine European carriers to oppose export subsidy rules
US Air Transport Association stated it has reached an in-principle agreement with nine European carriers on aircraft subsidies (Bloomberg, 08-Oct-2010). European carriers include British Airways, Air France-KLM and Lufthansa. The ATA and the European carriers are pressing for curtailment of Export Credit Agency-backed export subsidies for Boeing and Airbus aircraft outside of their home markets. An informal OECD agreement prevents export credits from being offered to airlines based in any of the five countries where Boeing and Airbus are based. The ATA and individual carriers may present a case to their respective governments next week.
US ATA: “There must be a level playing field among the world's airlines. Export credits should not give any airlines an advantage over other airlines,” David Berg, General Counsel. Source: Bloomberg, 08-Oct-2010.
Emirates: "We are an airline and these are government initiatives that have been in place for a very long time. If the governments decide to change the home rules it's up to them. To say we shouldn't take advantage of those is absolute nonsense. To say we are successful because we get cheap credit is complete nonsense," Tim Clark, President. Source: Reuters, 07-Oct-2010.