Tomorrow, Delta Air Lines will take delivery of a brand new Airbus A350-900. This comes weeks after Delta CEO Ed Bastian said that the carrier would not pay tariffs on any new aircraft deliveries. So, what changed?
Apparently nothing as the airline plans to take delivery without being subject to tariffs, using an unconventional loophole. As first reported by xJonNYC, Delta will take delivery of the plane abroad, flying the aircraft from the Airbus factory in Toulouse (TLS) to Narita Airport (NRT) in Tokyo.
Delta will reportedly take delivery of the aircraft in Tokyo before placing the aircraft into service. From there, the airline plans to use the aircraft, registration N528DN, only on international flights to and from the United States. By choosing to not operate the aircraft on domestic routes, it technically does not need to be imported. Also, since the aircraft was delivered outside of the United States, it will enter the country as a used aircraft.
While this is a wild strategy, it certainly isn’t a new one. As reported by One Mile at a Time, the airline used this exact same strategy in 2019 when the first Trump administration imposed a tariff on European goods.
An airplane like the Airbus A350-900 can easily be delivered this way and exclusively operate international flights given it’s range and how it fits into the airline’s fleet plans. However, this isn’t really feasible for the airline’s narrowbody order book. It will be interesting to see if Delta defers deliveries of those aircraft when the time comes or if it tries a similar strategy to what we’re seeing here.
While there are few folks enjoying the effect from these tariffs, I have to commend Delta here for getting creative and finding a workaround for the current predicament it finds itself in. What are your thoughts on Delta’s efforts to circumvent the tariffs on goods from Europe?
Summary
Delta Air Lines is avoiding tariffs placed on European goods by the Trump administration by taking delivery of new aircraft outside of the United States. Once the airplane is placed into revenue service it is considered used and, as long as it continues to operate international flights, it won’t need to be imported into the country.
While this is a fascinating workaround, its not the first time Delta has done this in order to avoid paying tariffs. Delta CEO Ed Bastian made it clear the airline has no intention of paying tariffs on any new aircraft and they are following through with that promise.
(Image courtesy Delta Air Lines)