WASHINGTON, D.C. — The General Aviation Manufacturers Association (GAMA) praised the efforts of members of the U.S. House of Representatives who signed a discharge petition last week that will force a vote on renewing the Export-Import Bank’s authorization, which expired on June 30.
Forty-two Republicans joined 176 Democrats in backing the petition.
“We are deeply grateful and appreciative of the members of Congress who took the unique but necessary step to sign the petition,” GAMA President and CEO Pete Bunce said. “With many companies, both large and small, already feeling the negative impact of the bank’s lapse, these members of Congress showed courage with their commitment to U.S. manufacturers, their workforce, and preserving a level playing field in global markets. We look forward to a full vote soon in the House, and hope that other members will join those who signed the discharge petition and vote to reauthorize the Bank.”
Since 2012, the Export-Import Bank has provided more than $1.9 billion to general aviation manufacturers by providing financing guarantees that are often unavailable from commercial banks, allowing them to close deals with non-U.S. clients.
The bank enables U.S. manufacturers to compete on a level global playing field, as over 60 other countries have similar export credit agencies that continue to operate, GAMA officials note. It also returned $675 million to U.S. taxpayers in Fiscal Year 2014.
As with most things in life, there are two sides to most stories and the Ex-Im bank is no different. Low cost loans, backed by US taxpayer dollars, go toward low cost financing of not just GAMA member manufacturers planes, but makers of transport category jets as well. This means that
Boeing sells its jets to foreign carriers such as Quantas, or Emirates or Qatar, etc…with 2 percent interest loans while US carriers pay market rates.
As an airline pilot and active GA flyer, it’s galling that my employer can’t access my tax dollars for low interest aircraft loans but a foreign carrier can.