The US airline industry has sued the Export Import Bank (Exim) alleging that its financial support to Indian national carrier Air India, which itself is in deep red, will harm the American airlines. In a revised complaint filed before a US court on Friday last week, the Air Transport Association of America, Delta Air Line and Air Line Pilots Association International, alleged that Exim Bank's decision to provide a loan guarantee of USD 3.4 billion to Air India, to help it buy 30 aircraft from Boeing, would badly affect several US airlines, the Delta in particular. Arguing that without the financial support from Exim Bank, Air India, which in itself is in deep red, would not have purchased these aircraft and thus would deploy them on those routes where it gives a tough competition to US airlines.
Source: Economic Times
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