Only one airline subsidy? Why not dump them all? Gee, lets see $15 Billion a year in subsidized commercial airliner discounts. Wonder what Amtrak could do with that money?
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Twenty-five top airlines from the U.S. and Europe have joined to oppose billions of dollars in government loan guarantees to their competitors for airplanes bought from Airbus andBoeing Co., according to executives leading the campaign.
The transatlantic lobbying alliance marks the first time carriers from the home countries of Boeing and Airbus have joined forces to attack export-credit financing.
U.S. and European backing for airplane exports, primarily in the form of government guarantees underpinning commercial loans, rather than cash outlays, is set to top $15 billion for the second year in a row—almost double its level before the financial crisis. The airlines argue they are being harmed by their own governments' efforts to support airplane production since their airline competitors benefit from the loans and they don't.
"The fact that we've come together adds force to our voice," said David A. Berg, general counsel of the Air Transport Association, the trade group that represents U.S. airlines.
The dispute boils down to a fight over which contributes more to national economies, airlines or plane makers, and how governments can support them without distorting markets. Differences have deepened since the financial crisis hit because export-credit has expanded to support roughly 35% of Boeing and Airbus sales. Before 2008, the funding underpinned only about 20% of sales.
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