CHICAGO (Reuters) – Airlines are bracing for the challenge of the tax breaks they receive from U.S. states as a result of participating in a political debate over voting rights, rekindling a national standoff between politics and profits.
FILE PHOTO: Protesters gather outside the Georgia State Capitol to protest against HB 531, which would impose tighter restrictions on voting in Georgia, in Atlanta, Georgia, US, 4 March 2021. Georgia adopted the restrictions on March 25. REUTERS / Dustin Chambers / File Photo
A Republican backlash that Delta Air Lines faced in its home state of Georgia after calling the new restrictions unacceptable is spreading to Texas as some companies clash with Republican lawmakers.
Democrats say the stricter regulations are undemocratic and will hurt black voters in particular.
American Airlines and United Airlines have spoken out against measures that restrict access to voting, prompting a furious backlash from Republicans who claim bills against fraud.
After Delta blasted Georgia’s Republican-backed voting bill last week, some lawmakers tried to end its jet fuel tax breaks.
Airlines now fear tax breaks that allow them to cut fuel costs could be singled out by Texas lawmakers in retaliation for their opposition to the new election laws, people familiar with their thinking said.
We have an eye on this as a possibility and I think it goes without saying that we wouldn’t like it, one person said, asking not to be identified.
Texas Lieutenant Governor Dan Patrick tore up companies for opposing the bill on Tuesday and accused the U.S. chief executive of not reading it, which the airline denied.
The clashes have shed new light on the reliance of some U.S. carriers on state tax breaks to reduce their fuel costs, with airlines the second-largest spending after labor and weighing on costs. slim profit margins.
There is one thing you consume a lot in the airline industry and that is fuel, said US analyst Bob Mann.
So they spend a lot of time trying to avoid taxes or eliminate taxes where they can. It is a competitive weapon.
Airport and fuel costs can influence airline decisions about where to add flights, and most states really want more air service, not less, said an executive at a small U.S. airline.
This isn’t the first time airlines have seen tax breaks come under the microscope after becoming involved in political matters.
In 2018, Georgia temporarily revoked a tax exemption after Delta ended its relationship with the National Rifle Association following a school shooting in Parkland, Florida.
The exemption would have saved Delta $ 40 million a year, a small amount compared to its total fuel bill of $ 9 billion, but enough to impact marginal roads. Eventually he won the tax break.
Delta is Georgia’s largest employer and its Atlanta hub generates significant revenue for the state.
North Carolina threatened to repeal a fuel tax exemption for American Airlines, with a hub in Charlotte, after opposing a state transgender bathroom law, but ultimately backed down .
As hot national issues have gained momentum after the Trump presidency, business calculations are shifting.
Executives at major U.S. airlines have decided it is increasingly important to take decisive positions on issues such as civil rights to protect their brands and appease employees and customers, the sources said.
For now, that overshadows concerns about whether these decisions could jeopardize things like tax breaks, they added.
Prolonged attention to tax breaks, however, could reopen injuries between US carriers and their rivals over what constitutes unfair aid.
In 2015, Delta, American and United – the so-called Big 3 – accused Gulf airlines of receiving $ 42 billion in government subsidies, including fuel hedging concessions and tax policies.
Emirates, Qatar Airways and Etihad dismissed the complaint, saying the US carriers themselves had received support.
Airlines are not immune to two-headed behavior. They speak out against government involvement in anything until it’s something that benefits them, how much they’re all for, Mann said.
US airline industry sources have dismissed any comparison to the Gulf trade dispute.
Talking about state-subsidized airlines versus certain tax exemptions is very different in size and scope than whether or not a particular state chooses to tax kerosene, one said.
U.S. airlines have struggled to act in unison on the earlier trade dispute or the recent domestic political conflict.
This adds a layer of complexity in Texas, where analysts say it would be difficult for lawmakers to punish the Big 3 without also harming Southwest Airlines Co, which did not directly oppose the ballot bills.
The Southwest’s biggest imperative right now is to win customers and survive the pandemic without alienating 50% of the population, said a person familiar with his thinking.
Reporting by Tracy Rucinski in Chicago; Additional reporting by David Shepardson in Washington; Editing by Tim Hepher and Matthew Lewis
What Are The Main Benefits Of Comparing Car Insurance Quotes Online
LOS ANGELES, CA / ACCESSWIRE / June 24, 2020, / Compare-autoinsurance.Org has launched a new blog post that presents the main benefits of comparing multiple car insurance quotes. For more info and free online quotes, please visit https://compare-autoinsurance.Org/the-advantages-of-comparing-prices-with-car-insurance-quotes-online/ The modern society has numerous technological advantages. One important advantage is the speed at which information is sent and received. With the help of the internet, the shopping habits of many persons have drastically changed. The car insurance industry hasn't remained untouched by these changes. On the internet, drivers can compare insurance prices and find out which sellers have the best offers. View photos The advantages of comparing online car insurance quotes are the following: Online quotes can be obtained from anywhere and at any time. Unlike physical insurance agencies, websites don't have a specific schedule and they are available at any time. Drivers that have busy working schedules, can compare quotes from anywhere and at any time, even at midnight. Multiple choices. Almost all insurance providers, no matter if they are well-known brands or just local insurers, have an online presence. Online quotes will allow policyholders the chance to discover multiple insurance companies and check their prices. Drivers are no longer required to get quotes from just a few known insurance companies. Also, local and regional insurers can provide lower insurance rates for the same services. Accurate insurance estimates. Online quotes can only be accurate if the customers provide accurate and real info about their car models and driving history. Lying about past driving incidents can make the price estimates to be lower, but when dealing with an insurance company lying to them is useless. Usually, insurance companies will do research about a potential customer before granting him coverage. Online quotes can be sorted easily. Although drivers are recommended to not choose a policy just based on its price, drivers can easily sort quotes by insurance price. Using brokerage websites will allow drivers to get quotes from multiple insurers, thus making the comparison faster and easier. For additional info, money-saving tips, and free car insurance quotes, visit https://compare-autoinsurance.Org/ Compare-autoinsurance.Org is an online provider of life, home, health, and auto insurance quotes. This website is unique because it does not simply stick to one kind of insurance provider, but brings the clients the best deals from many different online insurance carriers. In this way, clients have access to offers from multiple carriers all in one place: this website. On this site, customers have access to quotes for insurance plans from various agencies, such as local or nationwide agencies, brand names insurance companies, etc. "Online quotes can easily help drivers obtain better car insurance deals. All they have to do is to complete an online form with accurate and real info, then compare prices", said Russell Rabichev, Marketing Director of Internet Marketing Company. CONTACT: Company Name: Internet Marketing CompanyPerson for contact Name: Gurgu CPhone Number: (818) 359-3898Email: [email protected]: https://compare-autoinsurance.Org/ SOURCE: Compare-autoinsurance.Org View source version on accesswire.Com:https://www.Accesswire.Com/595055/What-Are-The-Main-Benefits-Of-Comparing-Car-Insurance-Quotes-Online View photos
to request, modification Contact us at Here or [email protected]