US airline group looks to block AI funding

In a bid to stop a crucialloan guarantee for Air India's plane acquisition from Boeing, an Americanairlines' industry body has filed a lawsuit against the US Exim Bank opposingits $3.4 billion support to the national carrier to buy the much-awaited B-787Dreamliners.

"In a suit filed with the US District Court of theDistrict of Columbia, ATA asked the court to find the Air India loan-guaranteecommitments unlawful, to prevent the loan guarantees from being issued, and toorder injunctive relief requiring the Exim Bank to comply with its statutoryobligations," the Air Transport Association of America (ATA) said in astatement in New York.

Civil Aviation Secretary Nasim Zaidi said, "We have notreceived any communication on the matter as yet. We can take a call only afterwe get a formal communication."

The US Exim Bank had last month approved loan guarantees of $1.3billion to support Air India's fleet acquisition from Boeing and another $2.1billion preliminary commitment to support future deliveries of the US aerospacecompany's planes to the Indian national carrier.

ATA, an aviation industry lobby group representing all majorUS airlines, had then written a letter to US Export-Import Bank Chairman FredHochberg opposing the decision, saying Air India's financial ill-health shoulddisqualify it from getting American help.

In its response, Exim Bank's general counsel was quoted in aUS media report as saying that the bank stood by its decisions and processes,though it would investigate some of ATA's assertions about its procedures.