Delta Air Lines pledged not to pay import duties on Bombardier's marquee jetliner, which was socked in the last 2 weeks with 300% tariffs by the US Commerce Department. It’s possible Delta will delay deliveries of the C Series planes, which are scheduled to begin next year, CE Ed Bastian said Wednesday. The airline is also considering “various other plans” if the preliminary duties are finalised, he said without elaborating. Delta last year agreed to buy at least 75 of the jets at a list price of more than US$5b. Delta’s determination not to pay the import charges raised the stakes in a dispute pitting Bombardier against Boeing, which accused its Canadian rival of selling the C Series at “absurdly low prices.” Boeing has won support from president Donald Trump’s administration. <br/>
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The price of air travel is poised to rise again, with airlines seeing beyond recent fare wars that have cut into their profits. Delta Air Lines Q3 profit fell more than 6% to US$1.18b, partly because Hurricane Irma robbed the company of $140m in revenue from canceled flights. The hurricane's impact was already known, however, so investors are more likely to seize on Delta's prediction Wednesday that revenue for each seat flown one mile will rise by up to 4% over last year during Q4. That forecast comes a day after American Airlines and United Airlines reported that the same key revenue figure would be better than expected in Q3. US airline stocks tumbled during July and August over concern that overly rapid expansion and fare wars — primarily between United and Spirit Airlines at several big airports — were hurting profits. <br/>
China Southern Airlines plans to assign 250 aircraft to Beijing’s new airport to operate more 900 daily flights by 2025 in an effort to enhance its position in the Beijing market. As early as 2011, the carrier signed a cooperation agreement with the Beijing govt to allocate 200 aircraft—Airbus A330s and A380s—to the airport over the next 10 years. The new airport—which broke ground earlier this week and is scheduled to open in 2019—is projected to handle 45m passengers in 2020, 72m in 2025, and 100m in the longer term. China Southern expects to invest CNY14.8b (US$2.3b) in the new 1.09m sq m Beijing airport. The carrier established a Beijing branch company in 2005. So far, China Southern has allocated 70 aircraft, including its 5 Airbus A380s for the Beijing market on 52 domestic and international routes. <br/>