Latest news with #A4A
Daily Tribune
18 hours ago
- 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
2 days ago
- 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
2 days ago
- 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."
New Straits Times
2 days ago
- Business
- New Straits 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 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. "Unlike other industries, the civil aviation manufacturing industry prioritises domestic production of high-value components and final assembly," AIA pointed out. According to the organisation, US aerospace and defense 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 United States 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. "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 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 minimise 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."
Yahoo
21-05-2025
- Business
- Yahoo
Air traffic control system ‘failing Americans': Airline executives
The heads of the largest airlines in the country penned an open letter Wednesday calling on Congress to fund a major modernization of the U.S.'s antiquated air traffic control system that has contributed to heightened safety concerns and rampant airport delays. 'The current system is failing Americans,' the group of 10 company CEOs wrote in a joint letter that was posted on the Airlines for America (A4A) industry collective's website. 'The United States needs and deserves a world-class aviation system.' A4A represents American Airlines, Delta Air Lines, United Airlines, Southwest Airlines, JetBlue, Alaska Airlines, Hawaiian Airlines and Atlas Air, as well as global shipping companies FedEx and UPS. Representatives from the airlines have been holding regular meetings with the Federal Aviation Administration (FAA) in recent weeks to discuss various concerns and steps forward to address them. 'Commercial airline travel remains the safest form of transportation in world history,' acting FAA Administrator Chris Rocheleau said in a statement Wednesday. 'But the last three months drove home that we need to do more, we need to be better, and we need to do it together.' The FAA issued an interim order on Tuesday reducing the flight arrival and departure rate at Newark Liberty International Airport in New Jersey, after staffing and equipment issues spiraled into mass delays. 'Our goal is to relieve the substantial inconvenience to the traveling public from excessive flight delays due to construction, staffing challenges, and recent equipment issues, which magnify as they spread through the National Airspace System,' Rocheleau said. Transportation Secretary Sean Duffy has been on an aggressive push to resolve a long-standing air traffic controller staffing shortage, but outdated equipment has compounded concerns in recent years. The airline companies wrote in their joint letter that it's on Congress to pay for a new multibillion-dollar, state-of-the-art air traffic control system. 'Aviation is an industry of innovation, and the FAA needs the ability to procure 21st century equipment and transformational technology solutions to efficiently and strategically handle 21st century flight volumes,' they wrote. Republicans, who hold narrow majorities in the House and Senate, are trying to hash out a spending plan for the coming year that will cover most of President Trump's sweeping policy agenda in what Trump has dubbed the 'one big, beautiful bill.' The House Budget Committee's version of the reconciliation bill includes just over $12 billion for the FAA technology upgrade, which the airlines deemed a 'solid down payment' toward the full overhaul needed. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
