Boeing, Delta disagree regarding global supply chain impact

An article in the Wall Street Journal (March 16,2012) describes an attempt by Delta to cut the extent of loans provided by the US government financed Export-Import bank to Boeing’s potential customers. While these loans help Boeing grow its exports, they also strengthen Delta’s competitors like Air-India, whose pricing has driven down margins on long distance routes fro he US to India. While reduced US financing helps Boeing, does it hurt Delta more than competitive financing provided to Airbus by European governments ? Will reduced Boeing customer funding merely get foreign airlines to switch to Airbus ?Overall, how should the global supply chain impact of US govt financing on business competitiveness be analyzed ?

About aviyer2010

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