Appeals Court Decision Rejects Delta Request for Invalidation of Ex-Im Bank Air India Transactions
WASHINGTON, June 18, 2013 /PRNewswire-USNewswire/ -- The U.S. Court of Appeals in Washington, DC today rejected a request by Delta Air Lines to vacate the Export-Import Bank of the United States' ("Ex-Im Bank's") support of sales of U.S.-manufactured aircraft to Air India. The Court has asked Ex-Im Bank to further explain its financing decision for the Air India transactions, but the Court chose to leave undisturbed the Bank's financing of the Air India transaction and did not question the Bank's flexibility in carrying out its statutory mandate.
The decision comes following the appeal by plaintiffs Delta Airlines, Inc. and the Airline Pilots Association of a lower court decision in July 2012 that determined that Ex-Im Bank properly approved financing for purchases of certain Boeing aircraft by Air India.
"I am gratified by the court's recognition that these transactions should not be impeded by litigation. The Bank maintains significant flexibility in complying with its statutory mandates and its effort to support American jobs," said Fred P. Hochberg, chairman and president of Ex-Im Bank. "This represents a victory for tens of thousands of American aerospace workers."
Delta Airlines alleged in its suit that Ex-Im failed to consider the economic impact of its loan guarantees for the purchase of wide-bodied Boeing aircraft by Air India. Boeing, which by dollar volume is the number one exporting company in the U.S., employs about 85,000 American workers in the manufacturing of its commercial aircraft.
ABOUT EX-IM BANK
Ex-Im Bank is an independent federal agency that creates and maintains U.S. jobs by filling gaps in private export financing at no cost to American taxpayers. In the past five years (from FY 2008), Ex-Im Bank has earned for U.S. taxpayers nearly $1.6 billion above the cost of operations. The Bank provides a variety of financing mechanisms, including working capital guarantees, export-credit insurance and financing to help foreign buyers purchase U.S. goods and services.
Ex-Im Bank approved $35.8 billion in total authorizations in FY 2012 – an all-time Ex-Im record. This total includes more than $6.1 billion directly supporting small-business export sales – also an Ex-Im record. Ex-Im Bank's total authorizations are supporting an estimated $50 billion in U.S. export sales and approximately 255,000 American jobs in communities across the country. For more information, visit www.exim.gov.
SOURCE Export-Import Bank of the United States