Delta CEO to support Ex-Im bank
#1
Delta CEO to support Ex-Im bank
Why the sudden change of heart?! Just when things in DC were showing signs of shutting it down RA stands up and decides to flip flop on the issue!
http://finance.yahoo.com/news/delta-...044739443.html
http://finance.yahoo.com/news/delta-...044739443.html
June 24 (Reuters) - Delta Air Lines Inc's CEO is expected to support the U.S. Export-Import Bank's assistance for sales of Boeing Co's widebody jets, softening his stance at a time when critics are mounting pressure to wind down the agency, the Wall Street Journal reported.
Delta Airlines has long argued that Ex-Im Bank financing allows foreign competitors to buy Boeing planes on better credit terms than it can obtain.
Delta's chief executive, Richard Anderson, plans to use a speech at the Aero Club in Washington, D.C. on Tuesday to distance the company from the calls of some Republicans and small-government advocates for the bank to be wound down, the Journal said. (Delta Chief Softens Stance on Ex-Im Bank Support for Boeing Big-Jet Sales - WSJ)
According to a draft of the speech obtained by the Journal, Anderson is expected to propose that the bank continue supporting sales of Boeing widebody jets to a limited number of airlines that lack alternative finance options, at least for as long as rival Airbus Group NV enjoys similar backing from European export-credit agencies.
There is a heightened scrutiny of the Ex-Im Bank as U.S. lawmakers debate whether to reauthorize the 80-year-old agency. The newly elected No. 2 Republican in the House of Representatives said on Sunday he opposed renewing its charter.
Anderson is expected to emphasize in his speech that he doesn't want Ex-Im to shut down, arguing that the bank has a vital role in preserving U.S. manufacturing jobs, the daily reported.
The Export-Import Bank backed $37.4 billion in exports in 2013. Scrapping the bank would be a blow to Boeing, Caterpillar , General Electric and other U.S. companies that rely on Ex-Im financing to make sales in export markets where commercial lending is scarce.
Delta Air Lines representatives could not be immediately reached for comment outside regular U.S. business hours.
Delta Airlines has long argued that Ex-Im Bank financing allows foreign competitors to buy Boeing planes on better credit terms than it can obtain.
Delta's chief executive, Richard Anderson, plans to use a speech at the Aero Club in Washington, D.C. on Tuesday to distance the company from the calls of some Republicans and small-government advocates for the bank to be wound down, the Journal said. (Delta Chief Softens Stance on Ex-Im Bank Support for Boeing Big-Jet Sales - WSJ)
According to a draft of the speech obtained by the Journal, Anderson is expected to propose that the bank continue supporting sales of Boeing widebody jets to a limited number of airlines that lack alternative finance options, at least for as long as rival Airbus Group NV enjoys similar backing from European export-credit agencies.
There is a heightened scrutiny of the Ex-Im Bank as U.S. lawmakers debate whether to reauthorize the 80-year-old agency. The newly elected No. 2 Republican in the House of Representatives said on Sunday he opposed renewing its charter.
Anderson is expected to emphasize in his speech that he doesn't want Ex-Im to shut down, arguing that the bank has a vital role in preserving U.S. manufacturing jobs, the daily reported.
The Export-Import Bank backed $37.4 billion in exports in 2013. Scrapping the bank would be a blow to Boeing, Caterpillar , General Electric and other U.S. companies that rely on Ex-Im financing to make sales in export markets where commercial lending is scarce.
Delta Air Lines representatives could not be immediately reached for comment outside regular U.S. business hours.
#2
What happened was Eric Cantor lost his seat as House Majority Leader and the new guy Kevin McCarthy made noises indicating that the shut down of the Ex-Im Bank was a real possibility.
In the past, Boeing had tolerated Delta's little crusade against their financing because it didn't matter. As soon as things got serious however, Richard Anderson experienced a bit of "constructive engagement" from some more powerful CEOs and politicians.
In the past, Boeing had tolerated Delta's little crusade against their financing because it didn't matter. As soon as things got serious however, Richard Anderson experienced a bit of "constructive engagement" from some more powerful CEOs and politicians.
#4
Well it sounded like the Washington DC politicians were on RA's side and wanted to shut it down, as you stated in reference to McCarthy. It is a huge disappointment to see Anderson crumble when the pressure is on.
The ME3 carriers win again...
The ME3 carriers win again...
#5
#6
Yeah I was quite taken aback when I saw the news of this this morning. I am personally much more interested in seeing Boeing adjust to the effect of a closure of ExIm than I am us having to deal with the unfair advantage the sand fleas will continue to have at taxpayer expense.... American taxpayer. Also, if Boeing has to make this adjustment of not getting gubbamint subsidies, maybe they will have to make their products more competitively priced. If not... there's always the space/military division...
#7
Not just Boeing. Caterpillar, General Electric, Northrop-Grumman, Cummins, NCR, Terex. Any U.S. manufacturer who sells overseas is going to take a dim view of McCarthy's libertarian brain farts.
It is always a bad idea to coddle ideologues. You can't even call these idiots "conservatives."
It is always a bad idea to coddle ideologues. You can't even call these idiots "conservatives."
#8
Not just Boeing. Caterpillar, General Electric, Northrop-Grumman, Cummins, NCR, Terex. Any U.S. manufacturer who sells overseas is going to take a dim view of McCarthy's libertarian brain farts.
It is always a bad idea to coddle ideologues. You can't even call these idiots "conservatives."
It is always a bad idea to coddle ideologues. You can't even call these idiots "conservatives."
#9
Gets Weekends Off
Joined APC: Jun 2010
Position: Just another RJ guy
Posts: 906
I wonder if there was a conversation like this recently:
BOEING: "Hey Richard, how about you have a change of heart and put in a good word on the hill. In exchange we will see what we can do about getting you a special low price deal on some of them wide body planes you're looking for."
Richard: "Hmm..I suppose I can spin my previous negative comments on the Ex-Imp situation to help benefit you (and me).... DEAL! Now get me some of them fancy 787's or a killer deal on the 777-300".
BOEING: "Hey Richard, how about you have a change of heart and put in a good word on the hill. In exchange we will see what we can do about getting you a special low price deal on some of them wide body planes you're looking for."
Richard: "Hmm..I suppose I can spin my previous negative comments on the Ex-Imp situation to help benefit you (and me).... DEAL! Now get me some of them fancy 787's or a killer deal on the 777-300".
#10
I wonder if there was a conversation like this recently:
BOEING: "Hey Richard, how about you have a change of heart and put in a good word on the hill. In exchange we will see what we can do about getting you a special low price deal on some of them wide body planes you're looking for."
Richard: "Hmm..I suppose I can spin my previous negative comments on the Ex-Imp situation to help benefit you (and me).... DEAL! Now get me some of them fancy 787's or a killer deal on the 777-300".
BOEING: "Hey Richard, how about you have a change of heart and put in a good word on the hill. In exchange we will see what we can do about getting you a special low price deal on some of them wide body planes you're looking for."
Richard: "Hmm..I suppose I can spin my previous negative comments on the Ex-Imp situation to help benefit you (and me).... DEAL! Now get me some of them fancy 787's or a killer deal on the 777-300".
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