Aircraft manufacturers and airlines face off over export credit subsidies
(Flight International & Bloomberg, 6 October 2010) American airlines are protesting that Emirate and Gulf airlines receive favourable financing of aircraft purchases via export credit agency support which is denied to OECD based airlines. They have even accused ECAs of creating overcapacity which damages their profits while supporting those of Boeing. Air France/KLM has also claimed a loss of business to Emirates, which has experienced a six-fold increase in traffic since 2000. The share of plane deliveries covered by government guarantees more than doubled to 34 percent in 2009, Airbus and Boeing figures show. These disputes have led to pressures for a renegotiation of the OECD sector understanding on export credits for civil aircraft, which covers terms and conditions for ECAs in Brazil, Canada, the European Union and the USA.