Delta Hates Subsidies, But Is Close To A Tax Cut That Will Cost Georgia Taxpayers $22 Million

The Airline That Hates Subsidies Is Close To Getting A Tax Cut That Will Cost Georgia Taxpayers $22 Million

One has to love hypocrisy, but it seems to exist in leaps and bounds when it comes to U.S. carriers who spend their days railing against Middle East airlines that receive subsidies from their governments.  The premise behind their argument:  they get subsidies, so we can’t possibly compete with them.  It makes for a good argument among protectionist folks who think competition doesn’t matter, but this story out of Georgia is really a gem.

Delta Air Lines, whose main hub is out of Atlanta, told Georgia they pay way too much in taxes in Georgia.  Well, the Georgia House passed a bill that would give a huge tax break to airlines that operate out of Georgia.  They won’t have to pay the full amount in taxes, which comes at a whopping $22 million in costs to the taxpayer if the jet fuel tax cut is approved.

Now, I am all for tax cuts and all for spurring the economy, but there is a rich irony, here, particularly given Delta’s most outspoken criticisms about foreign airlines that it feels threatened by.  It is absolutely amusing that they rail against the money foreign governments give those airlines while at the same time lobbying a state legislature to ask for a handout that will reduce costs for their business, while come at a significant expense to the taxpayers of Georgia.

There are no shortage or stories of Delta complaining about this phenomenon of foreign airlines, who in many ways have a superior product at affordable prices, coming into the U.S. market and threatening Delta’s business.  There was the time the Qatar Airways CEO trolled the CEO of Delta, or the their current attempt to stop a tax increase in Alaska with a special carve out, or the most recent whining that came from the U.S. air carriers when a new Emirates route was announced.  The winner in any circumstance where competition increases and prices decrease is always the consumer, but Delta doesn’t care much for the consumer, nor do any of the major airlines who get behind Delta on this whimsical tale of how foreign airlines threaten the very being of travel.

We should all, once again, take note of Delta’s support for this bill, which virtually acts as a subsidy for them to buy more fuel in Atlanta.