Boeing, Airbus Export Financing to Be Costlier Under OECD ECA Proposal

(Bloomberg, Paris, 21 December 2010) Airbus and Boeing planes will become more expensive to buy using state-guaranteed export financing under a draft agreement struck today by the U.S., France and five other countries. The OECD brokered proposal still needs final approval from governments by 20 January 2011. It would raise premiums charged for export guarantees to reduce distortions to competition between airlines. The rule change is designed to answer concerns among OECD based airlines that are excluded from receiving guarantees because Boeing and Airbus build planes there. Carriers such as British Airways Plc and Delta Air Lines Inc. said the cheaper funding terms favored rivals such as Ryanair Holdings Plc and Dubai-based Emirates.