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Tariff dispute keeps Delta MD80s in the air

 

Delta Airlines will have to postpone the final retirement of its aging MD80 and MD88 planes while it waits to see what will happen with its order for Bombardier CS300s, held up by a dispute over tariffs and subsidies.

According to Delta president Ed Bastian, speaking to investors, “Yes, we do know that we will not be taking the C Series according to the current schedule, which would be taking delivery this spring. And to that end we have to invest in maintaining some aircraft, particularly MD-88s to keep them around a little bit longer than we were otherwise anticipating.” Delta has about 100 MD80/88 series planes, the newest of them 18 years old.

Delta had expected to start receiving the new planes this spring, but after a Boeing complaint, the Trump administration threatened 300% tariffs on the Canadian-built planes. That issue is still in dispute, with Bombardier claiming that there is no competition with Boeing because Boeing doesn't make a plane in that size class, under 130 seats.

Delta had planned to use the CS300s on regional routes where it wants to replace small regional jets with a plane with more seats, called 'upgauging.' Since the MD80s are being pushed off mainline routes by newer A320/321 arrivals, they are available to fill that role temporarily.

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