Bloomberg the Company & Products

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Delta Sues Ex-Im Bank Over Non-U.S. Airline Guarantees

Don't Miss Out —
Follow us on:

April 3 (Bloomberg) -- Delta Air Lines Inc. asked a federal judge to block U.S. Export-Import Bank loan guarantees for foreign carriers’ purchases of Boeing Co. aircraft, claiming harm to American businesses wasn’t properly analyzed.

Delta, in a lawsuit filed today in federal court in Washington, seeks to stop guarantees of more than $100 million approved for Emirates Airlines, LOT Polish Airlines, Etihad Airways, Latam Airlines Group and Korean Air Lines. The bank violated the law by approving the guarantees “without any consideration of plaintiffs’ comments and the adverse effects on U.S. industry and employment,” according to the complaint.

“Because Ex-Im Bank loan guarantees lower their cost of capital, these foreign airlines will recoup their investment in their new aircraft faster or reduce ticket prices on competing routes without adversely impacting their relative rate of return on those investments,” Delta said in its complaint, which was joined by Hawaiian Airlines Inc. and the Air Line Pilots Association.

The lawsuit today is the third one filed against the bank by U.S. airlines seeking to stop loan guarantees to non-U.S. airlines. A federal judge in Washington is currently weighing Delta’s challenge to the bank’s regulations and guidelines on economic procedures which are to take effect this month.

The pilots group is awaiting an appeals court ruling of a November 2011 lawsuit claiming the bank didn’t seek public comment or consider the effect on the U.S. airline industry before approving $1.3 billion in loan guarantees and $2.1 billion in preliminary commitments to support the sale of 30 Boeing aircraft to Mumbai-based Air India Ltd.

Phil Cogan, a spokesman for the bank, declined to comment on the lawsuit.

The case is Delta Air Lines Inc. v. Export-Import Bank of the U.S., 13-cv-00424, U.S. District Court, District of Columbia (Washington).

To contact the reporter on this story: Tom Schoenberg in Washington at tschoenberg@bloomberg.net

To contact the editor responsible for this story: Andrew Dunn at adunn8@bloomberg.net

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.