Delta apparently saves something on the order of $20mm annually thanks to tax breaks granted by the Georgia legislature. That may change with a bill recently introduced for debate, but there are some concerns that the implementation might cause more issues than it solves. Seems that if the law remains as currently proposed it would have the revenue allocated to the state’s general fund and the FAA has issues with such an approach. The state would still have a couple years to figure out how to fix that before it would truly risk losing FAA funding ($67mm last year, well more than the fuel tax would bring in) but there is a risk.
Of course, with allegations that Delta’s lobbyist are threatening Georgia legislators, the plot thickens.
A rather bizarre situation developing down south.
- Comparing fuel burn from US carriers
- Behind the scenes on Delta’s fuel hedging desk
- Airlines are in on the Fuel Dump game in a big way
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