Congress: Protect Our Jobs in Ex–Im Bank Reauthorization Airline pilots
from across the nation, representing ALPA and the Allied Pilots Association (APA), took to Capitol Hill today to attend a
U.S. Senate Banking, Housing, and Urban Affairs Committee hearing on the
reauthorization of the Export-Import Bank of the United States. The pilots
delivered letters to members of the committee highlighting airline industry
workers’ concerns about the subsidies the Ex–Im Bank provides to foreign
airlines that put U.S. airlines at a disadvantage in the global marketplace and
threaten thousands of U.S. airline employees’ jobs.
“Airline pilots and thousands of airline industry employees across the
country need the U.S. Congress to seize the opportunity presented by the Ex–Im
Bank reauthorization to protect U.S. workers and their jobs,” said ALPA
president Capt. Lee Moak. ALPA also placed an
advertisement underscoring pilots’ concerns.
During the past five years, the Bank has provided financing for dozens of
wide-body aircraft to foreign airlines, with aircraft financing representing
more than 40 percent of all Bank financing. This financing is provided at rates
that are not available to U.S. airlines, and many of these Bank-subsidized
aircraft are being used on routes that are, have been, or could be served by
U.S. airlines. U.S. carriers have found that they have needed to withdraw from
or not enter routes that might otherwise be economically viable, costing airline
workers’ jobs.
When determining whether to provide assistance to foreign
purchasers of U.S. exports, the Bank is required to give full consideration to
any serious adverse effect of the possible financing on the competitive position
of U.S. industry and employment. In spite of this clear statutory command, the
Bank has decided that it need not undertake an economic-harm assessment in
connection with providing financing for aircraft purchases, even though aircraft
financing represents more than 40 percent of all Bank financing. Further, there
is every indication that Bank financing of wide-body aircraft is likely to grow
rapidly and increasingly threaten the ability of U.S. airlines to compete on
international routes.
The pilots on the Hill today asked senators to direct the administration to
enter into negotiations with the four European countries with export credit
agencies supporting Airbus aircraft sales, urging them to eliminate all
export credit agency financing of wide-body aircraft. The pilots also asked
Congress to ensure that the bank undertakes its congressionally mandated
economic effects analysis of potential financings to ensure that, with respect
to each transaction, the impact of wide-body aircraft financing for foreign
carriers is in fact a net positive for U.S. industry and employees. |