Major US and European airlines are jointly opposing government financial support for rivals.

Airport news for Travel,Flights on 07/10/2010.

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<p>A group of major airlines based in Europe and the USA is working together in a bid to stop subsidized financing that helps rival airlines in other countries to purchase aircraft. The export loan guarantees are meant to support export trade by Boeing and Airbus. US and European carriers, however, say the practice is unfairly hurting their businesses.</p>

<p>Airlines working together to oppose the practice include British Airways, Air France-KLM, American Airlines, Delta and Southwest. The Air Transport Association, a trade group representing major US airlines, says it will soon provide a detailed argument to officials in the US government.</p>

<p>The practice of providing export loan guarantees has long been seen as vital to supporting aircraft manufacturers Boeing and Airbus. Banks are typically unhappy to lend to airlines, which usually suffer from low credit ratings. However, a side agreement prevents major US and European airlines enjoying the subsidized financing their governments are providing to competitors in other countries.</p>

<p>The airlines are complaining that just as they start to dig themselves out of the economic mess of the last two years, they are being forced to deal with higher rates for financing fleet procurement than other airlines, many of which are strong competitors. They also say the subsidies lead to industry overcapacity.</p>

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