Air India loan ban demand spiked in US
A federal judge on Friday rejected a request by a trade group representing major US airlines to block a $3.4 billion loan guarantee package to help Air India buy dozens of planes from Boeing Co.
Airlines for America had in November sued on behalf of nine of its 14 members, including Delta Air Lines Inc and Southwest Airlines Co. , to obtain a preliminary injunction to stop the financing, which was to be arranged by the Export-Import Bank of the United States.
Once known as the Air Transport Association of America, the group argued that making low-cost capital available to foreign carriers put US rivals at a competitive disadvantage, and violated federal law by failing to take that into account.
It also said losses and management troubles at Air India should disqualify that carrier from the financing.
Nevertheless, US District Judge James Boasberg in Washington, D.C. said the group failed to show that its members would suffer irreparable harm if Air India started taking delivery of its Boeing 787 and 777-300ER wide-body jets.
He noted that only two planes are scheduled for delivery by March, and that it is "wholly speculative" to believe that these deliveries will cause injury to the US carriers.
Boasberg also said the group failed to show how an increase in foreign carriers' capacity would affect the ability of US carriers to sell seats on their own international flights.
Even if Delta had to cut every nonstop route where it competed with Ex-Im Bank-backed foreign carriers, "the lost revenue would represent less than
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