Why did US taxpayers help Air India, which is now mired in debt, buy a bunch of airplanes? Beats me, but it seems to me that if we’re serious about cutting government largesse, the Export Import Bank would be a good place to start. It’s corporate welfare dressed in the guise of foreign and economic policy.
In the case of Air India, which is run by the government of India, the reason that a foreign air carrier was able to get loans backed by US taxpayers may have something to do with the aircraft purchased. Air India bought up several Boeing 777s. Boeing, it turns out, is the Ex-Im Bank’s favorite. Fully 82.7% of the Ex-Im Bank’s loan guarantees in the current fiscal year have benefited Boeing in one way or another. Air India obtained its loan to buy the 777s in 2011.
Air India’s purchase of more than $3 billion worth of 777s has not turned the airline’s fortunes around, so now it’s looking to sell those aircraft, purchased via a loan backed by US taxpayers, at a steeply discounted $450 million.
Well, Boeing’s HQ is in Chicago after all, and they employ lots of union folks.
Anyone in the Aircraft or Passenger [Air] Hauling business knows for a certainity that anything Indian-Affiliated will always turn out badly for anyone not Indian-Born and Bred.
The country is a cess-pool of corruption and this is proven so often it is really not worth rational discussion.
During their recent negotiations for 126 Medium Fighter Jets [won by France]they actually had to have hearings to determine if any Bribes were paid or back channel chicanery was used.It’s SOP for all the big defense stuff.
When a contract is written for this type of purchase, ‘Production Offsets’ are established and the Material [Plane, in this case] provider has to bring in Technology for local manufacture to be used in the stated industry.
But there was not enough ‘local smarts’/potential partners involved in the entire freaking country to fulfill the Indian requirements.
Wish the EX-im Bank well in getting our dough back. The Rupee is not worth squat.
…and their word is worth less than squat……….