A POLITICAL ROW involving the Ilyushin Il-96M, Boeing and Pratt & Whitney is expected to be resolved in mid-April when the US Export Import Bank (Exim) decides whether to make loan guarantees sought by Aeroflot-Russian International Airlines (ARIA).
The trade dispute within the US aerospace industry and the Clinton Administration results from ARIA's request in October, 1994, for financing guarantees for the airline's purchase of 20 Il-96Ms, worth about $1.4 billion. ARIA is seeking about $1 billion in financing aid, which approximates to the cost of US components on the aircraft, including the Pratt & Whitney PW2337 turbofan.
Boeing says that Exim should back only foreign purchases of US airliners and that granting ARIA's request would set a dangerous precedent. P&W backs the loan guarantee, saying that, it supports hard-pressed US engine-makers.
Source: Flight International
