Would anyone happen to have a breakdown of which countries get financing? I m pretty sure ExIm targe

There s a good chance you ve never heard of the Export-Import Bank of the United States (Ex-Im Bank). The reason? extended stay hotels dallas Because it very likely extended stay hotels dallas doesn t impact you in your daily life, or if it does, you don t realize it. But the Ex-Im Bank has been controversial extended stay hotels dallas for several years when it comes to the airline industry, and you can expect to hear more and more about it as the bank comes up for re-authorization yet again next year.
The mission of the Ex-Im Bank is to boost American businesses extended stay hotels dallas by enabling sales of their goods to companies outside the US. How? Well, it helps foreign companies that can t line up funding on their own to obtain financing, primarily through guarantees to lenders. The end result is that it should mean more jobs for Americans because more people around the world are buying American products. Hooray!
In 2013, in fact, the Ex-Im Bank authorized $27.3 billion in funding. Of that, an incredible $8.3 billion, or 30 percent of the total, went toward financing aircraft purchases extended stay hotels dallas by foreign carriers. As you can probably imagine, Boeing loves this. It helps provide cheaper financing and that should mean Boeing sells more airplanes. But not everyone shares the same rosy outlook.
The airlines, particularly Delta, have been very testy over the Ex-Im Bank subsidies. What s even stranger? The Air Line Pilots Association (ALPA) agrees with Delta on this issue. The enemy of my enemy is my friend, or something like that. ALPA actually put out a release yesterday condemning the funding of widebody aircraft in advance of Congress starting extended stay hotels dallas to talk about this. After all, the Ex-Im Bank is due for re-authorization and that s why the rhetoric is bound to ramp up.
Presumably the reason for opposing only widebody aircraft is because those are the ones that come from far away lands to compete with US carriers. I m guessing I don t have to explain that it s really the Gulf carriers (eg Emirates and Etihad) that are causing a nervous reaction here (though Air India and others around the globe have also been in the spotlight). The Gulf carriers are buying a silly number of airplanes and rapidly increasing their number of destinations in the US so it is a major concern for Delta and others.
If you look at this from afar, then it seems rather silly. The Ex-Im Bank is basically deciding that Boeing will be the big winner since so much funding goes toward helping to buy airplanes. But the US-based airlines stand to suffer since those airplanes are being flown to the US in direct competition with US-based carriers. And those US-based carriers don t have access to the same financing deals. That sounds pretty bad.
Of course, the reality is a bit murkier. While the airlines say that foreign carriers extended stay hotels dallas have a big advantage because of this arrangement, Boeing has said that the US carriers have access to lower financing rates than the foreign carriers can get even with Ex-Im Bank assistance.
And naturally, not all of these loan guarantees are going to fund rich airlines with deep pockets anyway. It was just last week, for example, that Iraq said it was seeking Ex-Im Bank financing assistance for the Boeing aircraft extended stay hotels dallas it had on order . That s a different extended stay hotels dallas kind of situation entirely.
In perhaps the ultimate irony, Delta itself has even been the beneficiary of these deals. In February of this year, the Ex-Im Bank guaranteed some bonds so that Gol out of Brazil could buy engine maintenance services from the US from Delta TechOps. Oy vey.
Even though it s not as clear cut as it first appears, it still seems rather extended stay hotels dallas silly that the Ex-Im Bank needs to help rich carriers from afar to finance airplanes extended stay hotels dallas they d likely be able to buy anyway. extended stay hotels dallas It does appear that the Ex-Im Bank can provide a real, valuable service, but maybe it s time to tighten up the rules on who can qualify for funding. I m sure we ll hear a lot more about this in the coming months.
I think the Ex-Im bank is a good thing, but is it choosing Boeing over airlines? Do we have data for how many airlines fail and need the loan guarantees? Any hard data about the rates of guaruntees vs rates of US based airlines?
While I m guessing we could find this information, I wouldn t know how to make sure we were comparing apples to apples. My assumption is that these are incredibly complex deals in general, so I wouldn t want to try that on my own.
Why is the Ex-Im bank even talking to carriers like Emirates, Etihad and Qatar who have very large widebody fleets and happen to be state-owned ? It seems highly likely that if these 3 carriers wanted to borrow some cash, they could almost certainly find the funds from an alternate extended stay hotels dallas source. In its current state, Ex-Im granting loans to even the richest of foreign companies seems like little more than a significant market distortion.
It can (and probably) should be seen as a form of market distortion. The objective is to ensure that an Airline will buy a Boeing instead of an Airbus, so the distortion could end up helping extended stay hotels dallas the United States Manufacturing industry. Sidenote: I don t work in the aviation sector, but I do live in WA, so you can see my bias towards Boeng.
Kjell I think the question to ask is whether or not these aircraft extended stay hotels dallas would have been bought anyway without the Ex-Im financing. extended stay hotels dallas Maybe not in the case of Iraq, but I d bet that nothing would have changed with Emirates.
Just more proof that there is no such thing as a free market in basically anything. I don t have enough knowledge to feel strongly one way or another but I d bet the Europeans have something very similar in place to sell Airbus metal.
The pension plan for pilots is underfunded by about $3 billion, with $1.7 billion in assets to cover more than $4.7 billion in benefit liabilities. Of the $3 billion in underfunding, the PBGC estimates that it will be liable for almost $920 million, making the Delta pilots extended stay hotels dallas plan the sixth-largest claim in the agency s 32-year history. The plan ended as of September extended stay hotels dallas 2, 2006 and the PBGC became trustee on December 31, 2006.
What do you know about finance? By your article, precious little or how about next to nothing. Selling airplanes to the world is a business. Domestic commercial carriers are a joke. When the carriers are hurting for revenue, they ll be glad there are foreign buyers with any kind of financing ability.
Would it be possible for certain industries, like the airline industry, for the Ex-Im bank to guarantee extended stay hotels dallas loans for US Multi-national corporations just like foreign entities. The upside: Boeing still makes planes and we get jobs. Delta/AA/UA/VX/WN etc. get a more level playing field with regards to financing. I can see this working in a couple of ways. I know one of the articles above specify that domestic carriers already get lower rates than those guaranteed with Ex-Im bank, but that in and of itself isn t guaranteed.
extended stay hotels dallas D-ROCK Well, the bank is chartered to assist with financing exports. So it would require a change in the charter and I don t know if there are other implications beyond just that. Probably not something that s feasible.
As you know, these subsidizations, guarantees, promotions come in many types and who is to say what clearly is in the best interests of the country as a whole. extended stay hotels dallas You and I generally have no say, in any event, except by our ballots, and, oh well.
Reminds me of the infamous Fly America Act, or the Save Pan Am Act (sorry, didn t work) and the Government s GSA-run, city-pair, contract air fare program. Says in effect extended stay hotels dallas government and contractor travel SHALL be at the contract fare and on US-flag carriers, to the extent they are available. The airline may use a code-share with a foreign-flag carrier if it wishes and advises GSA. Precedence is given to such arrangements over another US-flag carrier, a losing or nonpbidder, with everyone understanding that the code-sharing will mean much of the revenue will go to the foreign-flag. Think DL cares if the money goes to a foreign-flag carrier and not UA. No way!
[And, nothing related to either extended stay hotels dallas the contract fare program or the Act mandates extended stay hotels dallas travel in a US-made aircraft. KLM Airbus, fine, as long as DL told GSA that it was going to code-share with KLM. Mostly, DL flies the route itself, but seeing UA not get a dime, it's the American (or, is it the DL?) way!]
GSA contract fares are just a more-public-than-usual (appropriate, because it is the government) corporate contract. It s common for corporate contracts to mandate that employees fly the contracted carrier that s how the company (the government, in this case) gets the preferred rate. And though the GSA fares are often more expensive than the cheapest walk-up fares, they re fabulous for completely unrestricted (YCA) or capacity-controlled but no-change-fee (-CA) fares.
extended stay hotels dallas The Fly America Act is deeply problematic, but not because airlines US airlines can put you on their partner s metal on routes they ve won the bid for. Remember, extended stay hotels dallas KL gets the same share of the revenue on any DL/KL/AF trans-Atlantic flight anyway, irrespective of the marketing or operating carrier (amongst those three; dunno how VS factors in).
IRS just a way to get around the subsidies riles on airplane sales. As such, it is very likely a huge inefficiency. Get rid of such subsidies altogether. They do not benefit extended stay hotels dallas anyone overall, and are merely the product of corrupt domestic politics.
Would anyone happen to have a breakdown of which countries get financing? I m pretty sure ExIm targets less developed countries like India, Thailand, Iraq, and Pakistan; basically countries extended stay hotels dallas whose airlines don t actually compete that much with American ones.
Delta keeps declaring it faces unfair competition, extended stay hotels dallas but never articulates the point. The Gulf carriers may have very little difficulty extended stay hotels dallas in securing finances and the EXIM Bank involvement covers a fraction of their needs. However, what everyone extended stay hotels dallas seems to conveniently forget extended stay hotels dallas is the fact the the Middle East carriers serving the USA are serving an expanding market that is neglected by US carriers. Further, their passengers are inte