Delta is sidestepping millions of dollars in US tariffs on European jetliners by initially routing them far outside the country to such places as Amsterdam, Tokyo and El Salvador. The US carrier has taken delivery of seven European-built Airbus planes since President Donald Trump’s levies took effect in October 2019. Rather than flying them home as it had in the past, Delta has based the aircraft overseas. The decision, coupled with the definition of new planes in the tariff rules, has kept the jets from being considered imports even though some of them regularly enter the US. Avoiding the tariffs has saved Delta precious cash while customs records show that rival carriers have been charged the duties. “We have made the decision not to import any new aircraft from Europe while these tariffs are in effect,” Delta said. “Instead, we have opted to use the new aircraft exclusively for international service, which does not require importation.” The Delta strategy rests on language that classifies planes as used once they’ve flown for any reason other than testing and delivery. Tariffs on new-plane imports then don’t apply, even if the aircraft are soon flying to the US. While Delta wouldn’t discuss the financial details, the savings are likely to be significant. The implications go far beyond Delta’s bottom line. The airline’s efforts also illustrate how the Trump trade wars have prompted US companies to reconfigure their business practices to avoid tariffs, often in ways that make them less efficient.<br/>
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Air France-KLM is discussing plans to raise another E6b ($7.1b) from its two government shareholders and other investors, French newspaper Le Monde reported on Tuesday. The airline group, which received E10.4b in state-backed bailouts earlier this year, may soon receive another 4b from the governments, combining a capital injection and hybrid debt, the paper reported. It would then aim to raise a further E2b from investors later in Q1 2021, according to the report, which cited anonymous sources. Air France-KLM had no comment, a spokesman said. <br/>
Vietnam’s National Assembly approved on Tuesday a plan to boost the capital of state carrier Vietnam Airlines after it was hit by the coronavirus pandemic. Under the plan, the government will buy new shares from the country’s flag carrier through its State Capital Investment Corp (SCIC), said the National Assembly. The statement didn’t say how much the plan would cost, but state media reports earlier this month said that Vietnam Airlines was in need of 12t dong ($518m). The State Bank of Vietnam, the country’s central bank, will also indirectly provide low-interest loans to Vietnam Airlines through financial institutions, the lawmakers’ statement said.<br/>