Former United CEO was ousted in disgrace after it was revealed his airline agreed to bribery demands by the Chairman of the Port Authority of New York & New Jersey. He was at dinner with the authority chairman when the ask was made for a special money-losing flight to the Chairman’s vacation home in exchange for moving along items of importance to the airline at Newark airport on the board’s agenda. United operated the flight.
The flip side of what United did apparently happened down in Georgia a couple of years ago. A member of the state legislature went public with threats from Delta: members who didn’t support fuel tax subsidies for the airline could lose flights to their districts. (Delta rewards favored politicians, too.) The special tax break expired.
However Delta is now apparently making progress towards bringing back its subsidies from the state of Georgia.
Bills that would make it cheaper for Delta Air Lines to buy fuel and for big yacht owners to get repairs done in Georgia are among several tax breaks moving through the General Assembly.
…Lawmakers typically pass a dozen or so special-interest breaks every year, sometimes cutting big money from the tax bills of chosen businesses or industries, usually with the promise of creating more jobs or “leveling the playing field.” Many such bills are currently working their way through the House Ways and Means Committee or awaiting action by the full chamber. Meetings of the tax-writing committee are packed with lobbyists either hoping to get a tax break or wanting to make sure changes aren’t made in tax law that hurt their clients.
No word yet on whether Emirates, Etihad, or Qatar will seek consultations under the Open Skies treaty to complain about the unfair government support that Delta will receive.
(HT: The Winglet)