Air Financing Research

U.S. Exim Bank

Textron, Gulfstream, sikorski

Independent federal agency, is not competing with private financial institutions. Rather, it
fills export financing gaps by providing services not already offered

Aimed at supporting American bussinesses/financial stability, particularly by assisting the

exportation of American-made goods

0.235% default rate

FY 2015 EXPORT VALUE COMPARISON BY SMALL BUSINESS AND MAJOR

INDUSTRIES:
o 41% Amall Bussiness
o 30% Commercial Aircraft
o 11% All Other Industries

o 9% Oil and Gas

o 7% Manufacturing
o 2% General Aviation

Main products
o Export credit insurance: An insurance policy/risk management product offered to
business entities wishing to protect their accounts receivable from loss due to
credit risks such as protracted default, insolvency, or bankruptcy
o Working capital guarantees: Provide pre-export financing a company to purchase
raw materials, supplies and equipment to fulfill an export sales order, or to obtain
financing for posting bid and performance bonds
o Guarantees of commercial loans to foreign buyers:

Export Development Canada:

Plane companies: Bombadier and Bell
Bombadier: boosted the order book to 370 from 233 a year ago. On Tuesday, Air Canada
completed a deal for up to 75 jets, including 45 firm orders, with deliveries beginning in 2019.
Delta Air Lines Inc. made the largest single commitment to the program in April, ordering up to
125 planes. Bombardier discounted heavily to win the deals, analysts say
By securing a mjor deal with Delta, Bombadier has secured its position as a possible challenger
to the Boeing/Airbus monopoly of commercial airliners. Its private jets include-

Learjet 70: Top speed of Mach 0.81, range of 2,060 nautical miles, and can
climb to an operating ceiling of 51,000 ft. Includes a high definition cabin management system
(CMS) featuring an Ethernet backbone, an iPod interface, and touch-screen. Costs $11.5 million

Learjet 75: Top speed of Mach 0.81, can travel up to 2,040 nautical miles,
holds 8 passengers, and has a 51,000 ft maximum altitude. Features in-cabin amenities of learjet
70 plus toughscreen cockpit controls. Costs $13 million

Challenger 350: Seats 8, can carry eight passengers, range of 3,200

nautical miles at a cruise speed of Mach 0.80. Offers advanced flight deck, recently developed
Cabin Electronics and Cabin Management systems, and largest-in-class HD cabin bulkhead
monitors. Costs $25.9 million

Challenger 650: Max speed of 0.82 Mach, max altitude of 41,000 ft, seats
10, range of 4,603 miles. Costs $32.4 million

In the news:
https://www.youtube.com/watch?v=r2v-DpY3Eh0 This video talks about how the European
Union must track the action of the ECAs of the member states in order to ensure that they were
properly encouraging the principle of fostering the Union's external action goals with regard,
among other things, to the promotion of democracy and human rights and the achievement of the
Millennium Development Goals. This stood out to me because of how significant of an
indicator each countries ECA was for their fulfillment of said goals. The international connection
as well as the national importance of ECAs can be easily identified in this speech.
https://www.youtube.com/watch?v=tdC1V9_4iHc A series of speakers brought together by the
London School of Economics to speak on the role of export credit agencies. The first keynote
speaker discussed the general going ons of international trade, citing the US trade deficit with
china as a way of exemplifying many of his points. He also noted that economists needed to
work on finding ways to easily explain certain economic concepts such as trade deficits and the
importance of trade to the general public so as to create a more eduacated public.

Glossary
Authorizations: The dollar amount that EXIM Bank has agreed to insure or finance (through an
insurance policy, a loan guarantee, or a direct loan).
Total Insured Shipments, Guaranteed Credit or Disbursed Loan Amount: The total dollar value of
Total Insured Shipments, Guaranteed Credit or Disbursed Loan Amounts supported by EXIM
Bank.
Total Export Value: The total dollar value of exports related to EXIM Banks authorized
financing.
Protracted Default: The failure by a buyer to pay the contractual debt within a pre-defined period
calculated from the due date or extended due date of the debt
Insolvency: A state of inability to pay one's debts (not legally)
Bankruptcy: A legal status of a person or other entity that cannot repay the debts it owes to
creditors

Sources
Congressional Address from Exim Bank: http://www.exim.gov/sites/default/files/congressionalresources/50%20States_8FEB2016_congressional-sans_cm.pdf

The federally ran site for Exim Bank: http://www.exim.gov/

BB&T (used for many definitions and to develop a better understanding of terminologies):
https://www.bbt.com/business/lending/commercial-lending/working-capital-guarantee.page
https://www.bbt.com/business/lending

Investopedia (used for many definitions and to develop a better understanding of terminologies):
http://www.investopedia.com/terms/e/export-credit-agency.asp?
layout=infini&v=5F&adtest=5F&ato=0
This is the largest finance and investing education site, many verified contributors.

ECA Watch: Has information on export credit agencies in general. http://www.ecawatch.org/ecas/export-credit-agencies

Export.gov: A site dedicated to how exportation procedure works in America, which I used more
as background research for export credit agencies