Air India rebuts claims, says not a party in case against ExIm - Economic Times

[Joey]

Air India rebuts claims, says not a party in case against ExIm - Economic Times

NEW DELHI/WASHINGTON: Rebutting claims of US-based airlines point by point, Air India on Monday said it is not a party in the case filed against the American Export Import Bank (ExIm) for giving loan guarantees of $3.3 billion to the carrier for buying 27 aircraft from Boeing.

Air India also refuted the claims of the Air Transport Association of America, the airlines' lobby, saying the 27 aircraft bought with the loan are yet to be inducted. Air India said all its India-US flights were operated on Boeing 777s for which it did not seek the loan from the ExIm bank.

"We are not a party in this matter. We had entered into an agreement with US ExIm bank for long-term loans for buying 27 B-787 Dreamliner aircraft manufactured by Boeing," a senior Air India official told IANS.

"Our flights are operated by B-777s every day. Our service and capacity on the routes are well utilised. The aircraft for which the loan was sought have not even arrived till now."

The first batch of Dreamliners are due for delivery to the national carrier next month.

Air India was responding to reports that US-based airlines, through the Air Transport Association of America, have filed a revised complaint before a US court alleging that Air India got an undue competitive advantage by taking US taxpayers' money to buy Boeing jets for less than what it would have paid in a free market.

The association claimed that the loan advantage was used by the carrier to nix competition on the India-US routes.

The case pertains to Delta Airlines, which had to cancel its service to Mumbai as it was unable to withstand


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