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My next guest says thousands of American jobs have been lost and many more are at risk.
All because of the US export import bank now that is the official export credit agency the United States.
Here to tells how the bank is -- thing.
-- he's a senior vice president and General Counsel for Delta Airlines.
-- welcome to the show thanks for coming on we appreciate it let's start with that letter the delta sent to congress what was that about.
Well the it's about the export import bank which provides financing for.
That net buyer foreign buyers of American goods.
Including American airplanes.
About half the financing that the bank provides goes to buyers.
Boeing aircraft the problem is that those aircraft come back into the market.
On international -- markets are completely deregulated now.
And they compete with US airlines act capital costs that are very substantially lower than ours in fact we've had.
Situations that delta where subsidized.
Here India in particular -- airline subsidized by the US government in its acquisition of long range aircraft.
Came into a market that we were operating profitable him.
And an effect -- -- out with excess capacity and low prices.
-- we show our viewers in the -- market.
We show our viewers here who's getting these these -- -- the recipients of the credit from him export import bank Qantas Japan airlines.
Can say is that Pacific and our rates air India so basically what these.
You know airlines from other countries do -- they coming -- -- Boeing airplanes using loans low cost loans from our federal government.
And that in the -- hurts companies like delta tell me how you get hurt.
Well what obviously what happens in the case of then you can hear any case I mentioned.
Delphi had started to operate between.
New York in Mumbai and India in 2007.
We're operating profitably we had enough capacity to satisfy the needs of the market.
And -- he entered the market -- triple seven aircraft going triple seven aircraft that have been financed by the export import bank.
The excess capacity drove prices down to levels -- -- couldn't sustain so we have to exit the market.
And that cost jobs cost pilot jobs because flight attendant jobs and cost mechanic.
While OK -- let me show folks how much the government is spending on this 45 point seven billion dollars over the past decade -- -- loans that have gone out the door from the US export import bank.
Here's what's fascinating debate -- -- a major beneficiaries Boeing because that's our big airline manufacturer in this country.
But there have been other companies to the benefited as well some lender -- and and -- Now those are two companies that don't have the greatest track record in the world Enron's out of business so it's a lender -- what does that tell you.
-- about this export import bank -- made it sounds like.
They're not doing -- -- -- a job frankly.
Both -- our focus.
Is on the aviation sector about half of the land thing.
That export import bank support services for -- points.
It's almost tripled since 2008 of the last four years become a real factor in aviation markets.
-- Boeing complains that.
Without it they'd be at a disadvantage.
To Airbus -- also gets export finance well in Europe.
That -- yeah Reuters I sold them.
At the exact flip side the other big maker of airline -- now this is Airbus which is subsidized by the French government so how do you counter that.
So -- the wrong way to level that playing field is to tilted against airlines because what's happening in effect is that the US government is picking winners and and losers and in this particular competition.
Your lines -- the losers the answer is a diplomatic solution it's for the US to negotiate hard make it a priority and eliminate these subsidies.
When we talk privately to Boeing.
They say they don't want the subsidy but they they have to have it because -- gets it when we talk privately Airbus and we operate both fleets.
Airbus says exactly the same thing they only want the subsidies because Boeing gets.
-- -- world like that we don't see why the US can't.
You know go across the Atlantic sit down and serious way and negotiate an end to these subsidies.
And while the level the playing field be level in that manner right wouldn't hurt us and then would wouldn't keep -- intact.
Well then there ego be logical about something that the government's involved and -- back after a we really appreciate your time fascinating interview thank you so much for coming on what -- we really appreciate it thank you then.