U.S. airlines opposing support package for Boeing for Air-India order

U.S. airlines opposing support package for Boeing for Air-India orderA body representing a group of US airlines has said that it is opposed to a multi-billion dollar support package for Boeing aircrafts that have been ordered by Air India.

The Air Transport Association of America filed a lawsuit against the Export-Import Bank of America to block the support package. It alleges that the federal body has not met its legal obligations.

The suit was filed on Wednesday in a court in District of Columbia. The suit reignites the complains by the US and US airlines that are not included in conventions seeking support for aircraft purchases from Eximbank or body's in France, the UK or Germany.

The US based trade group has expressed its opposition to the loan guarantees of up to $3.4 billion that were approved in September for Air India. The ATA is now suing for an injunction to block the use of the guarantees. It claims that airline has been able to increase its capacity by 12% more than they would have done without guarantees.

The airlines allege that low-interest credit assistance to foreign carriers is in violation to the federal laws in the United States. The also say that this financing puts them in a disadvantageous position. Air India had ordered upto 50 long-range Boeing jets worth about $6 billion in 2005.

"We believe that it is time for Ex-Im Bank to revise its practices and consider the impact on the U. S. airline industry and its employees," said ATA Chief Executive Nick Calio.