Delta is protesting new tariffs the U.S. will levy against Airbus. I’m not a fan of them either…but Delta’s opposition represents another example of blatant hypocrisy.
This week, the World Trade Organization (WTO) authorized the U.S. to levy $7.5BN in punitive measures against Airbus, finding that illegal state aid caused damage to Boeing’s commercial airline division.
The U.S. plans to impose a 10% duty on Airbus aircraft delivered into the USA starting later this month. That hits Delta particularly hard, which has large orders for A330neo and A350 aircraft on the books.
A Delta spokeswoman told Reuters:
Aircraft are significant purchases requiring long-lead times for production — often years in advance. Imposing tariffs on aircraft that U.S. companies have already committed to will inflict serious harm on U.S. airlines, the millions of Americans they employ and the traveling public.
Delta also added the “unexpected tax hike will also reduce Delta’s profits.”
Subsidies For Me, Not For Thee
Delta loves to talk about protecting U.S. jobs and how subsidized aid from foreign nations props up business that cannot compete on a level playing field.
But once again, we see a “subsidies for me, not for thee” approach from Delta. Here, the Airbus subsidies European states have provided have been beneficial to Delta. Thus, trying to “level the playing field” (another favorite term of Delta’s) would “inflict serious harm on U.S. airlines, the millions of Americans they employ and the traveling public.” Oh yes, and hurt profit.
Do you see the hypocrisy? If the subsidy hurts Delta or increases competition, Delta is against it “because it hurts U.S. jobs”. If the subsidy helps Delta or decreases competition, Delta is against eliminating it “because it hurts U.S. jobs”.
As an aside, Boeing should be careful of premature celebration, because the WTO may soon rule against it and in favor of Airbus. Boeing is also the recipient of generous state aid in the form of tax breaks and lucrative military contracts. With both sides guilty, I’m against these sorts of punitive tariffs as unnecessary barriers to trade.
CONCLUSION
I write a lot of positive things about Delta (view the archive here). I’m impressed at its operations, profitability, and the way it treats its employees. From all I hear and read about, the onboard product is also very nice.
But I will continue to maintain a laser focus on Delta’s hypocrisy. Hypocrisy is the fastest way to undermine your credibility and Delta has proven skillfully adept at its self-serving, inconsistent approach to supporting state aid. I’m not amused when it tries to torpedo competition through spurious arguments while trying to cling onto state aid for itself. Until that behavior changes, I’ll keep calling Delta on it.
image: Airbus
> Read More: Hey Delta, Where’s The Outrage Over Alitalia’s New U.S. Route?
Capitalism is hypocrisy. I am beginning to realize that. White Republican makes only care about themselves. Not about law, not about country, not about ideology or religion or principles. Only about making more money than others. Either making more or making others pay more. Liberals are no better. They are better at selling your private data if it makes them money.
They have a term to justify this hypocrisy. They call it emotional intelligence.
Well said, Matthew.
Delta’s CEO et al care about making shareholders, and by corollary, themselves money. Period.
Calling them out is wasting your time. Do you expect them to change or not be disingenuous?
Don’t like them? Fly AA, UAL. LUV, AS etc…
You’re far too smart/busy to take up space on this.
I see it as typical Corporate Rhetoric and nothing more.
The scary part is if they decide to take action as many other corporations have through pre-emptive layoffs under the guise that “Current legislation/rulings have brought about this action…” Yes, corporations do make moves like this I know through personal experience.
Yawn……
But DL continues to crush it’s competitors, and don’t worry because whatever Delta does the rest will follow….
@Debit to some degree I agree with you. The rinos put profit above conservative/libertarian ideology and it shows with how they are ok with open and pours borders and illegals flooding the country so they can pay 3 bucks less an hour ignoring the great violent crime, poverty and support for welfare illegals bring in. Liberals are all for this as well in addition to the h1b visas. As for country I don’t see a real country existing when so many different groups have differing ideals and imperatives. I think we’d be happier split into a couple of countries instead of being forced together like we are now enslaved by the voters we have nothing in common with.
My word. You sound awfully like a red commie. Ps. Get out of the USA you immigrant.
Vladimir,is that you? Several countries,eh? Just what the Kremlin ordered! Or as our Supreme Leader said,”Mess with me and it’s civil war”.
The difference between Boeing tax breaks and Airbus subsidies should be obvious. Boeing is taking advantage of the tax code that applies to all companies. They aren’t getting anything that isn’t available to anyone else. Airbus, on the other hand, gets free cash from their governments. Tariffs are of course not the desired outcome, but necessary to discourage future bad behavior. Saying you are against the tariffs is saying you are OK with Airbus continuing to get direct cash subsidies.