In Search of a Level Playing Field: the 2011 Aircraft Sector Understanding

On February 25, 2011, the rules governing the financing that export credit agencies can provide for the purchase of aircraft changed. The new rules apply to all forms of official state support for export credits and set out the most favorable terms allowed for aircraft financings supported by the export credit agencies of members of the Organisation for Economic Cooperation and Development and Brazil. In addition, the rules are an attempt to level the playing field with respect to government support among manufacturers, airlines and governments. This article reviews the history of international efforts to standardize export credit agency support in the aviation sector and the main features of the new rules.