ALPA Files Third Joint Lawsuit Against Ex-Im Bank Yesterday, ALPA filed
a lawsuit in federal court against the U.S. Export-Import Bank for approving
loan guarantees to several foreign airlines while disregarding the adverse
economic impact the financing has on U.S. airlines and their employees, which it
is legally required to do. ALPA was joined by Delta Air Lines and Hawaiian
Airlines as plaintiffs in the suit.
The lawsuit challenges the Ex-Im Bank’s approval of loan guarantees to Etihad
Airways, Korean Air Lines, LATAM Airlines Group, and Lot Polish to purchase
widebody aircraft that would allow them to increase their fleets and gain access
to key international routes. The guarantees would put U.S. airlines at a
competitive disadvantage, possibly forcing them to cut market share, reduce
flights, and trim American jobs.
“A law was passed last year that requires the Ex-Im Bank
to perform an economic analysis to assess the effect of bank financing decisions
on U.S. airlines and its workers,” said ALPA president Capt. Lee Moak. “In this
suit, we are challenging their failure to perform that analysis. Financing these
airlines with U.S. taxpayer dollars at rates substantially less than what U.S.
airlines have to pay in the open market is a direct assault on the U.S. airline
industry. ALPA will continue to urge the reform of the Ex-Im Bank’s practices to
ensure it adheres to U.S. laws and benefits our airline industry.”
In FY2012, the bank allocated approximately 46 percent of its total financial
commitments for air transportation loans and loan guarantees, which was more
than for the three next-largest industrial sectors combined. Since 2005, the
bank has provided foreign airlines with the following financing:
• $34.5 billion from 2005 to 2010
• $11.4 billion in 2011
• $11.6 billion in 2012
This is the third lawsuit ALPA and other plaintiffs have filed against the
Ex-Im Bank. In February, ALPA filed a suit together with Delta and Hawaiian
challenging the bank’s new guidelines and procedures for assessing the economic
effects of its financing practices on U.S. airlines and their employees. In
November 2011, ALPA and Airlines for America (A4A) sued the bank to block it
from guaranteeing billions of dollars of financing for Air India to purchase a
large number of aircraft. Both previous suits are ongoing. |