Jet Airways probably was not in a position to fund any major purchase for the moment (see the recent postponement of its 787 orders). So, changing for the MAX and thus deferring deliveries killed two birds with one stone.
- Delta Air Lines chief executive Richard Anderson claims that US Export-Import Bank (Ex-Im) loan guarantees for widebody aircraft save foreign carriers about 300bp versus commercial rates.
- Delta has filed multiple lawsuits to stop Ex-Im loan guarantees for widebody aircraft to airlines that are investment grade and government owned, including Air India, Emirates, Korean Air and LATAM Airlines Group. It claims negative economic consequences from the credit support.
DL has been leading the campaign by USA airlines against the EXIM bank.
I wonder whether DL would be interested in taking advantage of a French loan or credit enhancement that could be offered to help fund a large Airbus order. That would be the symmetrical situation to EXIM bank funding a Boeing purchase by Emirates. It would showcase distortions brought about by government-backed export finance institutions.
Boeing [NYSE: BA] is pleased that China Eastern Airlines has committed to purchase 80 737s, including Next-Generation 737 and 737 MAX airplanes. When finalized, the order will become China’s largest-ever purchase by an airline for single-aisle airplanes, worth more than $8 billion at current list prices. “We look forward to making history with China Eastern as they are poised to make the largest purchase for single-aisle airplanes by a Chinese airline,” said Ihssane Mounir, vice president of Sales and Marketing for Northeast Asia, Boeing Commercial Airplanes. “We share an enduring partnership with China Eastern and we are excited to see that the 737 family of airplanes will play an important role in their continued success.”