Bill Carey

Saying that it would rather spend its money elsewhere, Delta Air Lines announced that it will sever ties with the trade organization Airlines for America (A4A). The leading U.S. passenger carrier cited differences with A4A over its subsidies dispute with Persian Gulf airlines, the U.S. Export-Import Bank and the movement to privatize the nation’s ATC system.

 


In an announcement on October 27, Delta said that it plans to leave the Washington, D.C.-based trade group next year because A4A in recent years has failed to support it on several key issues. “The $5 million that Delta pays in annual dues to A4A can be better used to invest in employees and products to further enhance the Delta experience, and to support what we believe is a more efficient way of communicating in Washington on issues that are important to Delta customers and employees,” the airline declared.

 


A4A has not spoken out on charges that Delta, United and American airlines have leveled against Persian Gulf carriers, alleging they are improperly subsidized by their governments. <a href="http://www.ainonline.com/aviation-news/air-transport/2015-05-15/us-airline-ceos-vow-continue-gulf-subsidies-campaign">Delta initiated the bitter campaign</a> by the Big 3 airlines, <a href="http://www.ainonline.com/aviation-news/air-transport/2015-06-09/other-us-airlines-oppose-big-3-gulf-subsidies-dispute">which is not supported by other major U.S. carriers</a>. Meanwhile, United Airlines’ former CEO Jeff Smisek stepped down last month amid a federal investigation of the airline’s dealings with the Port Authority of New York and New Jersey. American Airlines CEO Doug Parker is chairman of the A4A board of directors.

 


Delta has distinguished itself from other carriers in <a href="https://www.ainonline.com/aviation-news/aerospace/2012-04-16/ex-im-support-competitors-hurts-says-delta-ceo">opposing the Ex-Im Bank</a>, complaining that the export finance agency helps foreign competitors acquire Boeing widebody airliners on more favorable terms than Delta can obtain on the commercial market. Efforts to renew the bank’s charter, <a href="http://www.ainonline.com/aviation-news/air-transport/2015-06-30/ex-im-bank-charter-expires-us-congress-takes-holiday">which expired in June</a>, took a step forward when the U.S. House voted on October 27 to reauthorize the institution.

 


Atlanta-based Delta and A4A have opposing positions on separating the ATC and regulatory functions of the Federal Aviation Administration, something Congress is considering in the next FAA reauthorization bill. A4A contends that the ATC function should be spun- off to a nonprofit entity governed by aviation system stakeholders and users, a model resembling an air navigation service provider. Delta calls the proposed separation of functions a “distraction” that would disrupt the momentum the FAA and industry have achieved in making the system more operationally efficient. The priority-setting process of the industry-government NextGen Advisory Committee, which is chaired by Delta CEO Richard Anderson, offers a better way forward for ATC modernization, the airline argues.

 


A4A said the “pending membership change” becomes effective next April and “was not unexpected.” Delta’s withdrawal will reduce the trade organization’s membership to nine U.S. carriers. Air Canada is listed as an associate member airline.

 


“As an association we work collaboratively in the best interests of our members and the customers and communities they serve, and are most effective advocating for the traveling and shipping public when we speak with a unified industry voice,” said A4A president and CEO Nicholas Calio. The pending change in its membership “will not distract” the organization from its platform of fighting higher taxes and “unnecessary” regulations, while also pushing for ATC modernization, he added.

 


Parker also weighed in as A4A board chairman. “We have been and will continue to be more effective as an industry advocating for our customers and employees with a unified voice in Washington, and we are committed to working with A4A to achieve reform at the highest levels, including air traffic control,” said the American Airlines CEO.

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