| News.az

The end is coming for special credit financing for plane purchases for developing countries if an “Organisation for Economic Co-operation and Development” agreement is ratified; the current agreement would allow Airbus and Boeing deliveries made under current conditions until 2012, affecting more than 138 planes ordered prior to May 2007. Eithad saves $20m in annual interest payments for eight newly purchase wide-body aircraft. The proposed changes would bring the interest rates closer to market rates.

Critics are competitors who do not enjoy the same financial breaks as those given to “developing” countries by export credit assistance from US Export-Import Bank. Proponents are obviously those airlines who benefit, i.e. Emirates, Dubai Aerospace Enterprise, Pemex (Mexico) and airlines headquartered in India.