Agreement reached on aircraft export credits – source

Leading passenger aircraft manufacturing countries have reached agreement on reforming the contested system of export credits to boost sales, a source close to the negotiations said yesterday.

“An agreement was reached yesterday evening. It concerns Europe, the United States, Brazil and Canada. And the governments should approve it by February 1,” the source told AFP.

Major aircraft manufacturing countries have been holding talks for months at the Paris headquarters of the the Organisation of Economic Cooperation and Development on reforming the so-called export credits.

European manufacturer Airbus and Boeing of the United States have defended the current system, under which foreign buyers get government loan guarantees to help them to buy aircraft, saying it helps many foreign airlines to finance their aircraft purchases.

A number of big airlines in Europe and the United States oppose the current system, complaining that it unfairly supports their competitors in the Gulf.

A reform was also necessary to take into account new competitors in the passenger aircraft market such as the Brazilian company Embraer and Canadian Bombardier.