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Why Delta Pays More Than Emirates for Boeing Planes

Soumis
 
WASHINGTON (TheStreet) -- Once again, let's review the lingering puzzle of why Boeing (BA) gets a private bank to finance aircraft purchases by wealthy foreign airlines to the detriment of U.S. airlines, and why that bank won't follow the rules Congress and the courts have made for it. The Export-Import Bank of the United States is our country's official export credit agency. Its mission is to assist in financing the export of U.S. goods and services to international markets. Last week, Delta… (www.thestreet.com) Plus d'info...

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kettler
karl kettler 4
This is a two way street. Delta benefits from preferential EU export finacing when it buys Airbus.
WALLACE24
WALLACE24 3
Airbus is government backed(owned) and Boeing is supposedly a private company. Our gov should not be involved in financing (with taxpayer money) for private companies.
andytyler
Andy Tyler 7
Because Emirates buys a lot more expensive planes than Delta? 100+ 777s is more money than 100 737s. Boeing still makes more money from Emirates than Delta, so obviously Emirates is going to get a lot of discounts/incentives to keep that going.

Count on Emirates being the launch customer for the 777X
joekel
Did you read the same article I did? You totally missed the point of US tax dollars (EXIM bank) supporting wealthy government owned/supported carriers (such as Emirates) to the detriment of US global carriers....regardless of the size of any particular aircraft order. This situation, which competitively disadvantages US carriers (because they pay higher financing costs which are not available to them anywhere) is not sustainable long term for any US global carrier. When it comes to aviation, the EXIM bank should stick to developing nation carriers who's finance options may be limited, not to wealthy state owned/supported carriers who have many financing options. BTW, I guarantee Boeing has made a lot more money over the years from any global US carrier (Delta, United, or American), than they have from Emirates.
WALLACE24
WALLACE24 7
Another taxpayer ripoff. I guess just like Fannie and Freddie they think everyone ought to have an airline. Lol
Cactus732
Cactus732 5
Simply put, Emirates orders are worth more to Boeing than Delta's. If Boeing forced Emirates to pay full price, Emirates would go elsewhere and buy the equivalent Airbus, leavig Boeing with Delta's comparatively tiny orders.
Doobs
Dee Lowry 1
James...you are so right! Go to "Airbus"??? Scarey thought! Foreign clients with Boeing is a profitable sale. U.S. clients are hurting financially, most likely because of their greedy "CEO's" and "Board Members".
JReinertsen
I believe the answer to the articles first question lays within the second sentance...theyre using the US "offical export credit agency" and therefore, rules and regulations set forth from congress and courts wont apply. its been like that for years. welcome to the rules of bogus politics.
TheBunnie
Bunnie Meyer 2
What about the fuel for those planes and why our gas is $4 a gallon. The CA refineries are EXPORTING gas to mexico and south america. Our "neighbors" to the south are being subsidized on fuel to keep us paying high gas prices. Our steaks are twice as expensive as need be because the washington dingbats are using corn for fuel instead of for cows. Same for milk.

You are a traitor if you destroy amerika financially just as much as if you gave away secrets. One big traitor and many smaller traitors and adding a trillion a year in debt is destroying america, formerly America.
mpradel
Marcus Pradel 2
Every country that sells durable goods has a EXIM bank or similar instrument to assist sales.

Ask JetBlue how much help they get from Brazil's government financing Embraer sales..
WALLACE24
WALLACE24 -1
Cyprus and Greece have really good ones. Lol. Most countries don't purport to have a free market place to the extent we do. My only point is that the US taxpayer is being put on the hook all over the world. Sales between Boeing and Emirates are probably of no importance to the average taxpayer. Boeing can give them the planes as far as I'm concerned, then they won't need financing, which Emirates doesn't need in the first place. Makes you wonder.
HerrThor
HerrThor 1
I flew with Delta to a Congress in N. Orleans, they charged me 25 bucks for my luggage, that is, 50 dollars round trip, this does not happen in other countries with other airlines! Wish some day I can travel with Emirates!
WALLACE24
WALLACE24 2
You just want the complimentary towel.
HerrThor
HerrThor 1
LOL!!!!
ToddBaldwin3
Todd Baldwin 1
You've never traveled on RyanAir.
HerrThor
HerrThor 1
I forgot that! I never travelled with RyanAir, but my family had. But RyanAir is a low-cost, while Delta supposedly is not!
Doobs
Dee Lowry 1
I guess what I really wanted to say is...cuz they can!!
apmechanic
Mike Carrillo 1
Is this bank making it easier for a foreign entity than a domestic one to buy aircraft? That seems to be what the article is implying. If that's the case, then it may be part of a foreign aid package. Sometimes our government helps other countries in unconventional ways.
Boeing is not at liberty to sell anything they want to whoever they want, by the way. They cannot sell military secrets or equipment that would give any entity a decided advantage over our military.
Derg
Roland Dent 1
Same thing here in Europe...Norway has so much money it really does not know what to do with it...so it forward orders 50 B73s....
Derg
Roland Dent 1
Well if the USA is like $13 trillion in debt and the Emirates is $13 trillion in the black....what THE F am I missing here?
WALLACE24
WALLACE24 0
You're behind sir. Mr O has been spending. We are now coming up on 17 trillion.
Doobs
Dee Lowry 1
Hey ...if Boeing puts the"MSRP" out there and the airline buys it...So be it! Simple as that! It's all about the almighty $$$!

[This poster has been suspended.]

ToddBaldwin3
Todd Baldwin 3
Do we really have to use foul language to make a point?
AWAAlum
AWAAlum 2
Oh come on Todd, you silly thing - we all know Rudderless can't express himself in a positive way. Give him a break - he just can't help himself.
WALLACE24
WALLACE24 -1
Assholes is putting it mildly.
andytyler
Andy Tyler 0
Since when is government interference in the free market economy a good thing? Boeing should be allowed to sell whatever they want to whoever they want and whatever prices they see fit. Would you rather Emirates go 100% airbus instead and then have Americans lose their jobs from the lack of aircraft purchases by foreign airlines?
WDB57
Patrice Venne 4
There is nothing free in this world, Europeans are subsidizing entire industries: Agriculture, automobiles, electronics, Airbus; one thing for sure there is nothing free where I live (Germany). Free market is a buzz word used by the criminals in charge of Wall Street, in Washington, Berlin, London, Beijing. The globalist definition of free market= we must be free from People's oversight, laws or reporting in order to freely conduct God's deeds.
WALLACE24
WALLACE24 1
Ex-Im is government (taxpayer) backed. Not free market. An argument could be made that free market is pretty much gone since the government has injected it's self into so many industries; banking, insurance, auto, medical, to name a few. IMHO
ruagatr
ruagatr 0
This is why people hate government. Only in the world of graft and bribery could this system function.
suz
suz 0
We're on the road to perdition ...
joelwiley
joel wiley 2
Didn't we pass perdition on this road some time ago?
Av8nut
Michael Fuquay 0
If Emirates is so rich, why the talk of financing? They can pay for their triple-7s with cash.
WALLACE24
WALLACE24 -1
So that when the Middle East unravels they won't pay for them. Plus you can bet it was a sweetheart deal on your dime.

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