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Delta finds clever way to dodge Trump tariffs and redirect A350 deliveries

By:

Pilotcenter.net

Delta Air Lines is strategically maneuvering to steer clear of import tariffs set by the US government on European-made Airbus aircraft. Eager to dodge the 10% tariffs on products from Europe, the Atlanta-based carrier is set to implement innovative solutions to sidestep the additional expenses linked to adding new Airbus planes to its fleet. To circumvent the tariff structure imposed on European imports into the US, Delta will adopt a strategy involving re-routing new Airbus planes through an intermediary country. This tactic aims to exploit a loophole where tariffs are only applicable to "new" products rather than used ones.

The definition of a new aircraft according to the Trump administration is precise, stating that it encompasses planes that have not flown operational flights aside from production tests or direct delivery flights. To leverage this distinction, Delta plans to fly its latest Airbus A350-900, on 30 April, 2025, with registration N528DN, from Toulouse, France to Tokyo-Narita Airport before continuing to the US. By introducing a revenue flight outside the EU before its US arrival, the aircraft will no longer be considered new and will thus avoid the 10% import levy.

Ed Bastian, Delta Air Lines’ CEO, assured investors of the company's ability to sidestep these tariffs by utilizing international routings and legitimate revenue operations, enabling it to expand its fleet without incurring additional costs. By deploying widebody aircraft exclusively on international routes, Delta effectively avoids the tariff complications that come with operating them within the US, unlike domestic, short-haul flights.

While Delta is successfully evading tariffs on its widebody aircraft from Airbus, the approach for avoiding tariffs on narrowbody A321neos remains uncertain. Regardless, with numerous aircraft on order from Airbus, Delta is poised to navigate these challenges by ensuring all new aircraft operate revenue services outside the US before their arrival, mitigating the risk of costly import duties.

Delta's astute navigation of import tariffs showcases its commitment to strategic fleet management and compliance with regulatory requirements while maintaining its ambitious expansion plans. By leveraging international routes and operational nuances, Delta is successfully skirting potential financial burdens, ensuring smooth operations for its expanding fleet.

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