Boeing and airlines disagree over subsidies

10/3/2010 | Wall Street Journal, The

A disagreement between Boeing and domestic airlines regarding the government's aircraft-export loans appears to be escalating, with both parties taking their grievances to Washington. In August, the Air Transport Association sent a letter to top federal officials objecting to Export-Import Bank loan guarantees that are available to foreign airlines but not to U.S. carriers. Such subsidies are "causing direct and substantial competitive harm to U.S. airlines" by artificially boosting capacity, ATA said. In a letter to lawmakers, Boeing replied that the complaints are "without merit" and that curtailing subsidies "would seriously jeopardize the U.S. aerospace industry's ability to compete."

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