Delta Airlines Finds a Clever Way to Avoid a Tax on New Planes

The Problem: A 20% Tax on New Planes
When U.S. companies import new airplanes from foreign manufacturers, they must pay a tariff (a tax on imports). For Delta’s new Airbus A350-900 plane, this tax could add 20% to the cost—a huge expense.

The Loophole: Make the Plane “Used”
Delta found a workaround:

  1. Fly the new plane to Tokyo first instead of directly to the U.S.
  2. After an international flight, the plane is no longer considered “brand new” under U.S. rules.
  3. No tax is charged when it arrives in the U.S. as a “used” plane.

Analogy: Imagine buying a new car but driving it around the block a few times to avoid a “new car tax.” The car is technically used, even if it’s only slightly.

Key Details

  • Plane involved: Airbus A350-900 (Registration: N528DN).
  • Flight path: France → Tokyo → U.S.
  • Savings: Avoiding a 20% tax could save millions of dollars.

Why This Matters

  • Delta’s CEO, Ed Bastian, stated: “We won’t pay tariffs on new planes. A 20% tax makes the math impossible.”
  • Risk: The U.S. government might penalize Delta for exploiting this loophole.
  • Trend: Other airlines could copy this strategy to save money.

Simplified Summary:
Delta turned a new plane into a “used” one with a detour to Tokyo, dodging a 20% tax. It’s a smart money-saving move—but could backfire if the U.S. takes action.