Latest news with #A4A
RTÉ News
08-07-2025
- Business
- RTÉ News
Airlines for America warns Dublin Airport passenger cap bad for economy
A trade association representing US airlines said it expects US Department of Transportation officials to travel to Ireland to raise concerns over the passenger cap at Dublin Airport. Airlines for America also warned that it believes the US government could respond with "reciprocal restrictions" if the limit on passenger numbers is not lifted. Aer Lingus is the only Irish airline currently providing transatlantic routes to the US. The passenger cap was among the conditions attached to the planning permission that was granted in 2007 for the construction of Terminal 2 at Dublin Airport. It set a limit on passenger numbers passing through the airport at 32 million a year. Keith Glatz, the A4A Senior Vice President for International Affairs, claimed the cap is a direct violation of the EU-US Open Skies Agreement and is bad for the Irish economy. That deal opened up all transatlantic routes to EU and US airlines, enabling them to fly between any point in the two territories. "We anticipate the US government will be on the ground in Dublin later this month to have a first set of conversations with the Irish government to address the concern," Mr Glatz said. "It's a priority for all of us on the US side and certainly we are concerned about the compliance with the Open Skies Agreement," he added. Asked what the consequences could be if the passenger cap remains in place, Mr Glatz said: "There's a lot of issues on the table between the US and EU right now, and we do not need a passenger cap in Ireland, that can be solved tomorrow, to become part of that larger conversation." A4A represents both passenger and cargo carriers, including Delta, American Airlines, United, JetBlue and Air Canada, as well as FedEx and UPS. The group has also called on the Government to fulfil its commitment to address the limit. The Programme for Government included a pledge to "work with stakeholders to achieve our objective of lifting the passenger cap at Dublin airport as soon as possible." Keith Glatz said A4A was pleased to see pre-election manifesto commitments from Fianna Fáil and Fine Gael to resolve the issue. "We're a bit concerned with the timeline from the election, to now, the fact that nothing has happened, but we know that there are solutions out there that can be handled to move the issue forward," he stated. A spokesperson for the Department of Transport said Minister Darragh O'Brien is "examining a range of issues in relation to the 32 million passenger cap planning condition". The spokesperson said the Minister for Transport has also "commenced a process of engagement with key stakeholders." The trade association's Senior Vice President for International Affairs also said he believes the Government's obligations under the Open Skies Agreement should supersede domestic planning issues. Mr Glatz said the passenger cap "artificially constrains that [Open Skies Agreement] and it's a violation of the agreement." "The record's really clear here. Dublin is highly attractive to our members. We've been increasing flights year over year post-Covid. That's why the cap has become an issue today." He insisted a removal of the cap would result in "further growth, new routes and new entrants" into Ireland. "What we would envisage is record growth to Dublin, increased flights, new services, different products and new entrants, which are good for the transatlantic market, but also good for the Irish economy and good for the locality," he said. Asked if Dublin Airport is being overlooked by carriers looking to expand services because of the restriction, he said the passenger cap is "absolutely a limitation." "You're limiting the throughput to the airport. So that means fewer passengers, fewer business travellers, fewer direct investments that are going to be made into the Irish economy," he said. Airlines for America was a party to a legal challenge against the Irish Aviation Authority's move to reduce the allocation of take-off and landing slots for the winter and summer seasons to comply with the passenger cap. The action also involved Aer Lingus and Ryanair, as well as the airport operator daa. The High Court suspended the cap's implementation, while it referred the matter to the Court of Justice of the European Union for determination. The Department of Transport spokesperson also said Minister O'Brien has "reiterated the importance of daa continuing to engage proactively with the planning authority and the Aircraft Noise Competent Authority to facilitate progress on the two planning applications" the airport operator has lodged seeking to amend the passenger cap.
Irish Times
07-07-2025
- Business
- Irish Times
US may limit Aer Lingus flights because of Dublin Airport passenger cap, industry group warns
The Government may have just months to axe the 32-million-a-year cap on passengers at Dublin Airport before the US limits Aer Lingus flights to its airports, a North American industry group warns. Airlines for America (A4A), whose members include US and Canadian carriers that fly from the US to the Republic, maintains that the passenger limit on Dublin Airport breaches European Union-North American open-skies air-travel treaties. According to Keith Glatz, A4A's senior vice-president of international affairs, the US could respond to the cap by limiting Irish airlines' access to the US. Aer Lingus is the only Irish carrier offering regular scheduled transatlantic flights. Mr Glatz explained that he was not speaking for the US government, but noted that 'typically' Washington's department of transportation can respond to an illegal breach of the treaty by limiting the number of cities to which a country's airlines can fly. READ MORE He cautioned that the time left for the Irish Government to end the cap and avoid such a sanction was narrowing. 'We're talking about a couple of months to get this done, and not a year,' Mr Glatz said. The pressure from the US administration on the Government to act is likely to increase as time progresses, he predicted. [ Dublin Airport passenger cap to be breached this year, says DAA Opens in new window ] Mr Glatz stressed that A4A believed that Darragh O'Brien, Minister for Transport and the Government, wanted to keep a pledge to lift the cap and ensure the Republic complied with air-travel treaties. He also maintained that his organisation had good relationships with both Mr O'Brien and the Department of Transport. 'We're working closely with them, they're working with the US government, they're moving, but slower than we would like them to move,' he said. How the wealthy are buying up land to avoid inheritance tax Listen | 22:03 'They understand that they have to do this, and that now is the time to get this done, before a small issue becomes a larger, international dispute.' A4A believes that legislation to lift the cap is drafted, meaning that it is simply a matter of time before the Oireachtas passes it and the cap is lifted. Planners imposed the limit in 2007 as a condition of allowing airport operator, DAA, to build a second terminal at Dublin, to address fears of traffic congestion. Shortly after taking office in January, Mr O'Brien confirmed that he had sought the advice of Rossa Fanning, Attorney General, on resolving the row through legislation. The Minister subsequently predicted this would be ready by the autumn. A department spokesman said on Monday that the Minister was examining a range of issues relating to the passenger cap and was continuing to 'engage with key stakeholders'. The High Court suspended the cap's implementation when it referred questions raised in a legal challenge by airlines to the European courts. A4A is a party to that challenge, initiated by Aer Lingus and Ryanair, but Mr Glatz said that the referred issues related to European and Irish competition law, not to European Union-North American air-travel treaties. He argued that those treaties made possible the Republic's relationship with the US, worth trillions of dollars, and predicted that lifting the cap would spark further growth. Aer Lingus did not comment on any likely sanctions but the airline has consistently warned of the economic damage that it threatens.
Daily Tribune
09-06-2025
- Business
- Daily Tribune
US aerospace industry anxious as tariffs loom
AFP | New York US airlines and aerospace manufacturers insist they have no use for tariff protections, warning that the proposed Trump administration levies could eat into the healthy trade surplus the sector has enjoyed for more than 70 years. At the request of President Donald Trump, Commerce Secretary Howard Lutnick's department launched an investigation on May 1 to determine whether to impose tariffs of between 10 and 20% on civil aircraft and parts, including engines. The US industry those tariffs were crafted to protect swiftly let the administration know it was not interested. 'Imposing broad tariff or non-tariff trade barriers on the imports of civil aviation technology would risk reversing decades of industrial progress and harm the domestic supply chain,' the Aerospace Industries Association (AIA) said in a letter addressed to Lutnick and obtained by AFP. The interested parties were given until June 3 to communicate their positions. The very next day, Lutnick announced that Washington aimed to 'set the standard for aircraft part tariffs' by the end of this month. 'The key is to protect that industry,' he said, adding: 'We will use these tariffs for the betterment of American industry.' But AIA and the Airlines for America (A4A) trade association voiced fear that far from helping, the tariffs would end up harming US manufacturers. No fix needed 'Unlike other industries, the civil aviation manufacturing industry prioritizes domestic production of high-value components and final assembly,' AIA pointed out. According to the organization, US aerospace and defense exports reached $135.9 billion in 2023, including $113.9 billion for civil aviation alone. This allowed the sector to generate a trade surplus of $74.5 billion and to invest $34.5 billion in research and development, it said. The sector employs more than 2.2 million people in the United States across more than 100,000 companies, which in 2023 produced goods worth nearly $545 billion. In its response to Lutnick, the A4A highlighted how beneficial the international Agreement on Trade in Commercial Aviation (ATCA) had been by helping to eliminate tariffs and trade barriers over nearly half a century. 'The US civil aviation industry is the success story that President Trump is looking for as it leads civil aerospace globally,' it insisted. A full 84% of production was already American, it said, stressing that Washington 'does not need to fix the 16 percent' remaining. 'The current trade framework has enhanced our economic and national security and is a critical component to maintaining our national security moving forward,' it said. For manufacturers, the potential tariffs would act like sand jamming a well-oiled machine that has been running smoothly for decades, experts warned. They would also throw off balance an ultra-sensitive supply chain still recovering from the Covid-19 pandemic. 'Competitive disadvantage' 'To avoid the situation getting worse, we advocate to keep aerospace outside of trade wars,' Willie Walsh, head of the International Air Transport Association (IATA), told the organization's general assembly last week. AIA meanwhile stressed that 'aircraft and parts are already in high demand and have a limited supply.' 'Integrating new suppliers and expanding capacity is complex, timely, and costly,' it warned, pointing out that finding suppliers capable of meeting rigorous safety certifications could 'take up to 10 years.' Delta Air Lines also argued for sticking with the status quo, cautioning that the proposed tariffs 'would hinder Delta's ability to maintain its current trajectory.' 'If component parts incur tariffs upon entering the United States, Delta will be at a competitive disadvantage to foreign competitors,' it said. 'The action would also impose an unexpected tax on Delta's purchases of aircraft contracted years in advance.' Delta chief Ed Bastian insisted in late April that the airline 'will not be paying tariffs on any aircraft deliveries we take,' adding that it was 'working very closely with (European group) Airbus' to minimize the impact. Delta pointed out in its letter to Lutnick that it currently had 100 aircraft on order from Boeing, and that it was demanding that its Airbus A220s be produced primarily in Mobile, Alabama. But if the tariffs are imposed, it warned, 'Delta would likely be forced to cancel existing contracts and reconsider contracts under negotiation.'
Business Times
08-06-2025
- Business
- Business Times
US aerospace industry anxious as tariffs loom
[NEW YORK] US airlines and aerospace manufacturers insist they have no use for tariff protections, warning that the proposed Trump administration levies could eat into the healthy trade surplus the sector has enjoyed for more than 70 years. At the request of President Donald Trump, Commerce Secretary Howard Lutnick's department launched an investigation on May 1 to determine whether to impose tariffs of between 10 and 20 per cent on civil aircraft and parts, including engines. The US industry those tariffs were crafted to protect swiftly let the administration know it was not interested. 'Imposing broad tariff or non-tariff trade barriers on the imports of civil aviation technology would risk reversing decades of industrial progress and harm the domestic supply chain,' the Aerospace Industries Association (AIA) said in a letter addressed to Lutnick and obtained by AFP. The interested parties were given until Jun 3 to communicate their positions. The very next day, Lutnick announced that Washington aimed to 'set the standard for aircraft part tariffs' by the end of this month. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up 'The key is to protect that industry,' he said, adding: 'We will use these tariffs for the betterment of American industry.' But AIA and the Airlines for America (A4A) trade association voiced fear that far from helping, the tariffs would end up harming US manufacturers. No fix needed 'Unlike other industries, the civil aviation manufacturing industry prioritizes domestic production of high-value components and final assembly,' AIA pointed out. According to the organisation, US aerospace and defence exports reached US$135.9 billion in 2023, including US$113.9 billion for civil aviation alone. This allowed the sector to generate a trade surplus of US$74.5 billion and to invest US$34.5 billion in research and development, it said. The sector employs more than 2.2 million people in the US across more than 100,000 companies, which in 2023 produced goods worth nearly US$545 billion. In its response to Lutnick, the A4A highlighted how beneficial the international Agreement on Trade in Commercial Aviation (ATCA) had been by helping to eliminate tariffs and trade barriers over nearly half a century. 'The US civil aviation industry is the success story that President Trump is looking for as it leads civil aerospace globally,' it insisted. A full 84 per cent of production was already American, it said, stressing that Washington 'does not need to fix the 16 per cent' remaining. 'The current trade framework has enhanced our economic and national security and is a critical component to maintaining our national security moving forward,' it said. For manufacturers, the potential tariffs would act like sand jamming a well-oiled machine that has been running smoothly for decades, experts warned. They would also throw off balance an ultra-sensitive supply chain still recovering from the Covid-19 pandemic. 'Competitive disadvantage' 'To avoid the situation getting worse, we advocate to keep aerospace outside of trade wars,' Willie Walsh, head of the International Air Transport Association (Iata), told the organisation's general assembly last week. AIA meanwhile stressed that 'aircraft and parts are already in high demand and have a limited supply.' 'Integrating new suppliers and expanding capacity is complex, timely, and costly,' it warned, pointing out that finding suppliers capable of meeting rigorous safety certifications could 'take up to 10 years.' Delta Airlines also argued for sticking with the status quo, cautioning that the proposed tariffs 'would hinder Delta's ability to maintain its current trajectory.' 'If component parts incur tariffs upon entering the US, Delta will be at a competitive disadvantage to foreign competitors,' it said. 'The action would also impose an unexpected tax on Delta's purchases of aircraft contracted years in advance.' Delta chief Ed Bastian insisted in late April that the airline 'will not be paying tariffs on any aircraft deliveries we take,' adding that it was 'working very closely with (European group) Airbus' to minimize the impact. Delta pointed out in its letter to Lutnick that it currently had 100 aircraft on order from Boeing, and that it was demanding that its Airbus A220s be produced primarily in Mobile, Alabama. But if the tariffs are imposed, it warned, 'Delta would likely be forced to cancel existing contracts and reconsider contracts under negotiation.' AFP
France 24
08-06-2025
- Business
- France 24
US aerospace industry anxious as tariffs loom
At the request of President Donald Trump, Commerce Secretary Howard Lutnick's department launched an investigation on May 1 to determine whether to impose tariffs of between 10 and 20 percent on civil aircraft and parts, including engines. The US industry those tariffs were crafted to protect swiftly let the administration know it was not interested. "Imposing broad tariff or non-tariff trade barriers on the imports of civil aviation technology would risk reversing decades of industrial progress and harm the domestic supply chain," the Aerospace Industries Association (AIA) said in a letter addressed to Lutnick and obtained by AFP. The interested parties were given until June 3 to communicate their positions. The very next day, Lutnick announced that Washington aimed to "set the standard for aircraft part tariffs" by the end of this month. "The key is to protect that industry," he said, adding: "We will use these tariffs for the betterment of American industry." But AIA and the Airlines for America (A4A) trade association voiced fear that far from helping, the tariffs would end up harming US manufacturers. No fix needed "Unlike other industries, the civil aviation manufacturing industry prioritizes domestic production of high-value components and final assembly," AIA pointed out. According to the organization, US aerospace and defense exports reached $135.9 billion in 2023, including $113.9 billion for civil aviation alone. This allowed the sector to generate a trade surplus of $74.5 billion and to invest $34.5 billion in research and development, it said. The sector employs more than 2.2 million people in the United States across more than 100,000 companies, which in 2023 produced goods worth nearly $545 billion. In its response to Lutnick, the A4A highlighted how beneficial the international Agreement on Trade in Commercial Aviation (ATCA) had been by helping to eliminate tariffs and trade barriers over nearly half a century. "The US civil aviation industry is the success story that President Trump is looking for as it leads civil aerospace globally," it insisted. A full 84 percent of production was already American, it said, stressing that Washington "does not need to fix the 16 percent" remaining. "The current trade framework has enhanced our economic and national security and is a critical component to maintaining our national security moving forward," it said. For manufacturers, the potential tariffs would act like sand jamming a well-oiled machine that has been running smoothly for decades, experts warned. They would also throw off balance an ultra-sensitive supply chain still recovering from the Covid-19 pandemic. 'Competitive disadvantage' "To avoid the situation getting worse, we advocate to keep aerospace outside of trade wars," Willie Walsh, head of the International Air Transport Association (IATA), told the organization's general assembly last week. AIA meanwhile stressed that "aircraft and parts are already in high demand and have a limited supply." "Integrating new suppliers and expanding capacity is complex, timely, and costly," it warned, pointing out that finding suppliers capable of meeting rigorous safety certifications could "take up to 10 years." Delta Air Lines also argued for sticking with the status quo, cautioning that the proposed tariffs "would hinder Delta's ability to maintain its current trajectory." "If component parts incur tariffs upon entering the United States, Delta will be at a competitive disadvantage to foreign competitors," it said. "The action would also impose an unexpected tax on Delta's purchases of aircraft contracted years in advance." Delta chief Ed Bastian insisted in late April that the airline "will not be paying tariffs on any aircraft deliveries we take," adding that it was "working very closely with (European group) Airbus" to minimize the impact. Delta pointed out in its letter to Lutnick that it currently had 100 aircraft on order from Boeing, and that it was demanding that its Airbus A220s be produced primarily in Mobile, Alabama. But if the tariffs are imposed, it warned, "Delta would likely be forced to cancel existing contracts and reconsider contracts under negotiation."
