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Delta Air Lines avoids tariffs with innovative engine repurposing strategy

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Delta Air Lines avoids tariffs with innovative engine repurposing strategy
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Ed Bastian Delta's CEO | Official Website

Delta Air Lines is navigating the challenges posed by tariffs between the United States and Europe with an innovative approach. The airline has been removing US-built engines from new aircraft manufactured in Europe and shipping them back to the United States. This strategy allows Delta to avoid paying a 10% tariff on imported jets, while equipping its fleet with new turbines.

According to The Detroit News, Delta's method involves using American-made engines on grounded aircraft that originally had Pratt and Whitney engines. This enables Delta to maintain fleet growth without incurring additional costs for new Airbus jets.

Delta's CEO, Ed Bastian, stated: “We are not planning to pay tariffs on aircraft deliveries.” Despite this workaround, some engine-less aircraft remain undelivered due to tariffs and unapproved seats by regulators.

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This situation mirrors challenges faced by other airlines like Lufthansa, which has also experienced delays due to unapproved cabins. Both airlines have adapted by adjusting schedules or employing creative solutions like Delta's engine repurposing.

In addition to this strategy, Delta has previously avoided tariffs by delivering Airbus A350 jets built in Europe to another country before entering service in the US. Not all Airbus jets face tariffs as some are assembled in Mobile, Alabama.

Delta Air Lines continues to address trade uncertainties with innovative solutions as it manages its global operations.

Organizations Included in this History
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