Skip to main content

The Competitive Status of the U.S. Civil Aviation Manufacturing Industry A Study of the Influences of Technology in Determining International Industrial Competitive Advantage (1985) / Chapter Skim
Currently Skimming:


Pages 83-87

The Chapter Skim interface presents what we've algorithmically identified as the most significant single chunk of text within every page in the chapter.
Select key terms on the right to highlight them within pages of the chapter.


From page 83...
... However, in cases where the Europeans go up to 85 percent with a subsidized rate, the Eximbank guarantee program is more expensive, particularly when the 0.5 percent commitment fee is included. Although the commonline agreement that relates to large transport aircraft calls for a 10-year term, both Eximbank and the European agencies are willing to guarantee a 12-year lease transaction.
Read the entire page →
From page 84...
... manufacturers. The Eximbank and the European agencies now have an informal understanding not to provide financing commitments in one another's countries, i.e., the United Kingdom, France, West Germany, and the United States.
Read the entire page →
From page 85...
... Some recent transactions for both domestic and international carriers have been based on an operating-lease concept in which the airline commits itself to lease aircraft for a two- or threeyear lease payment term. The concept involves structuring the transaction as a tax lease with the lessor taking the investment tax credit and the accelerated depreciation.
Read the entire page →
From page 86...
... The financial community, the aircraft manufacturers, and the airlines need to continue efforts to design financing packages that meet airline minimal cash flow and balance sheet requirements and that minimize the exposure of the manufacturers while assisting them in making sales. The panel recognizes that use of tax policy to improve international competitiveness is controversial, largely because it involves tax "expenditure" to encourage exports.
Read the entire page →
From page 87...
... The importance of foreign markets for the U.S. civil aircraft manufacturing industry means that congressional proposals to deny even the current, restrictively defined investment tax credit to foreign operators could have a serious and detrimental impact on the industry.
Read the entire page →

Key Terms

  • civil aircraft
  • foreign markets
  • west germany
  • transport aircraft
  • aircraft manufacture

  • aircraft manufacturers
  • aircraft industry
  • commonline agreement
  • technological innovation
  • foreign competition

  • export agencies
  • investment tax
  • tax credit
  • aircraft manufacturing
  • european export

  • noted earlier
  • senior lenders
  • residual value
  • aircraft producers
  • aircraft purchases

  • european agencies
  • tax lease
  • manufacturing industry
  • aircraft exports
  • commuter aircraft

  • foreign aircraft
  • provide financing
  • retaliatory measures
  • operating leases
  • commitment fee


    • This material may be derived from roughly machine-read images, and so is provided only to facilitate research.
    More information on Chapter Skim is available.