When Delta Air Lines CEO Ed Bastian said that Delta would not pay tariffs on any new Airbus jets…he wasn’t kidding.
How Delta Air Lines Is Outsmarting Airbus Tariffs
Aviation insider JonNYC noticed that a new Delta A350-900, registration number N528DN, is heading from the Airbus factory in Toulouse (TLS) to Tokyo Narita (NRT). That seems strange, doesn’t it?
But One Mile At A Time notes what is really going on:
- By first flying the plane to somewhere outside of the EU before flying it to the US, the plane is no longer considered new
- The airline will then exclusively use the plane for international flights, and therefore, the plane is never actually imported to the United States
The result: no tariffs.
Clever…maybe even ingenious, no? But not a new strategy. For Delta used this very strategy in 2019–during the first Trump administration–to skirt tariffs.
Back then, a Delta spokesperson explained:
“We have made the decision not to import any new aircraft from Europe while these tariffs are in effect. Instead, we have opted to use the new aircraft exclusively for international service, which does not require importation.”
A 10% tariff is currently set on Airbus jets made outside the USA. Those whose final assembly is completed in the USA (like the Airbus A220 manufactured in Mobile, Alabama) are not subject to the tariff, but all widebody Airbus jets are assembled outside the United States.
The Trump administration defines a new aircraft as one that has “no time in service or hours in flight other than for production testing.” By flying the A350 to Narita where it will then operate a flight to the USA, the jet will no longer be new, though Delta will not be able to officially import it (yet).
I always thought Delta could just set up a holding company in Europe or Asia and then import and operate aircraft via that company…but this alternative seems quite shrewd.
CONCLUSION
Delta is taking a delivery of a new Airbus A350-900 tomorrow and intends to avoid paying any tariffs on it through a scheme it has already used in the past to avoid such levies.
Thus, when Ed Basian said:
Obviously, in this environment, we are going to work very closely with Airbus, which is the only airline we’ve got deliveries coming from for the balance of this year. And they’ve been a great partner. We’ll do our very best to see what we have to do to minimize tariffs. But the one thing that you need to know we are very clear on is that we will not be paying tariffs on any aircraft deliveries we take.
…he was serious.
> Read More: Delta Air Lines CEO: We Will Not Pay Tariffs On New Airbus Deliveries
And yet it seems that this blatantly violates the spirit of the new trade policy, even if it does not violate the letter of the law. Will an administration that is fixated on “leveling the playing field” in a bid to increase US manufacturing allow this little ploy to proceed? We’ll see…I’m not certain.
Companies pay people tons of money to figure out how to skirt taxes, so this shouldn’t surprise anyone. I’m not defending the insane tariff fiasco, but it’s not surprising.
Delta kept its maintenance facility at Tokyo Narita airport even after it ended service there.
They have used it to do induction maintenance on many A350s and 330-900s under both the current and previous administrations. so tariffs aren’t the only reason to have kept its NRT maintenance facility.
Delta is still scheduled to receive more new widebody deliveries than any other airline in 2025 just as they did in 2024. and the 350-1000s start coming next year.
Does this facility date back to Northwest Orient?
I don’t know about NW Orient but it was part of the assets that came w/ the DL-NW merger.
Has to be – Northwest has had Fifth Freedom flights from NRT post WW2.
I worked for NW Orient and then just Northwest Airlines in the 70’s through the 90’s. My understanding after the merger with Delta, Delta kept the maintenance facility as there was still a 5th freedom pseudo “hub” at NRT, although much smaller. Delta still had the NWA 747’s which went to NRT and they needed the talent there to service them.
I believe DL’s NRT maintenance team has been dispatched to other parts of Asia for aircraft maintenance needs.
Smart. I hate paying taxes too.
I plan to use my next car for a lot of international driving in Canada and Mexico. So I won’t be importing it either. I’ll probably bring along a bunch of new phones, laptop computers, TVs, microwaves and rooftop solar energy systems as I’m driving to Tierra del Fuego.
Who’s with me?
So, if I pick up my Mercedes in Stuttgart, and drive around Europe for a week or two, I can avoid the Trump surcharge when I have it shipped to the US?
No. I looked into that for a new Porsche. Not possible. Sorry.
No because you are still importing the car and you are not purchasing it used.
Hey – idea: I live in Portugal but – for any car purchaser out there – I will set up a company in Luxembourg whose sole purpose will be to purchase vehicles from the original purchaser (such as one being discussed here), have professional drivers put a dozen miles on them here in Europe, and then sell them back to the original purchaser as a used car. Sale will be made at the original sales price plus a nominal “service charge.” Said company will even arrange shipping for vehicle into the US. Who’s in?
This will drive the sale of “slightly used” Airbus and ATR aircraft.
An US based carrier could provide financing for an Euro entity to purchase airframes.
Then the entity sells the airframes to DL, AA, UA for a slightly used price plus finder’s fee.
Better yet, just lease airframes coming from Europe till things calm down.
the larger point is that DL is not importing the aircraft to the US until the tariff issue is resolved. As long as it does not fly domestic routes, they can get by w/ what they are doing.
An even larger point, they are screwing the average American and not paying the taxes they should. Rules for thee but not me.
You are correct in your statement.
Seems like Delta doesn’t want to pay their “Fair Share™️” in taxes.
Is Delta part of the Oligarchy that Comrade Sanders has been warning us about for 20 years?
I guess they crooks over at VA Ave can’t complain when customers use tricks to get around their ripoff award pricing.
it’s either legal or it is not.
Every company employs lawyers and accountants that legally figure out how to reduce costs including taxes.
If DL is doing anything criminally, then they are in the wrong. If they are simply putting pieces of the law together, they are just smart.
and the issue is less about widebodies than Hamburg built A321NEOs – which includes the A321XLR which is on order by multiple US airlines including AA and UA.
Airbus does not build it in Alabama and it will fly many domestic routes.
and the real issue is that the EU and US will come to a new agreement on trade and it will allow Airbus and Boeing to access each other’s markets. the current tariff war hurts Boeing more than Airbus
Clever. The stupid Trump administration has obviously forced companies to take creative measures such as this to combat its own blatant stupidity.
No words more true.
This is all above board. A subsidiary in Japan is taking delivery, putting it in a trustee relationship with Bank of Utah who registers with FAA. New fresh American titled aircraft, that’s “leased” to Delta to operate however it wants to.