The US District Court for the District of Columbia has ruled that the Export-Import bank of the US (Ex-im) did not violate its governing statutes when it approved $3.4 billion in loan guarantees for Air India's purchase of Boeing aircraft last year.
Airlines for America (A4A) and Delta Air Lines claimed that the guarantees enabled foreign airlines to obtain financing for Boeing aircraft at lower rates than domestic carriers, which allowed them to add capacity and gain market share at the expense of US airlines.
"Plaintiffs [A4A and Delta] have established standing and that the bank's loan guarantee determinations are, at least in a limited sense, subject to judicial review," wrote judge James Boasberg in his opinion on 18 July.
"But after winning these battles, Plaintiffs lose the war," he wrote, referring to his decision on the question of whether the guarantees violated Ex-ims governing statute.
The guarantees were split $1.3 billion in firm coverage and $2.1 billion in preliminary coverage for 27 787s and three 777-300ERs.
The court rejected a request by A4A and Delta for a preliminary injunction to stop the deal until a ruling in January.