U.S. airlines are scrambling to digest a new 10% tariff on European-made Airbus ...
FILE PHOTO: The first U.S.-made Airbus jetliner moves down the assembly line at the company's factory in Mobile, Alabama, U.S., on September 13, 2015. Picture taken on September 13, 2015. REUTERS/Alwyn Scott/File Photo
No. 2 U.S. carrier Delta is not a 737 MAX customer but with some 266 Airbus orders is the most exposed to aircraft levies due to take effect on Oct. 18 after the World Trade Organization gave Washington the right to impose tariffs on $7.5 billion worth of EU goods annually in a long-running case.
The exemption means that the impact for U.S. airlines with orders for Airbus aircraft assembled in Alabama can be mitigated, Cowen analyst Helane Becker said, pointing to no-frills carrier Spirit Airlines as one carrier whose order book would mostly come from Alabama.Airbus’ Alabama plant produces four A320-family narrowbody jets a month, and Credit Suisse analyst Jose Caiado estimated that the plant could fulfill at least half of the U.S.
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