Airbus Devises Strategy to Circumvent US Tariffs for US Airlines, and More

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Airbus Leverages Tariff-Dodging Tactics for US Airlines as Trade Tensions Escalate

Airbus CEO Guillaume Faury has revealed the company's approach to avoiding Trump's tariffs by delivering aircraft to US airlines through third countries, effectively bypassing direct imports to America.

This tactic, already being implemented with a Delta Air Lines A350-900 scheduled to fly from Toulouse to Tokyo, mirrors strategies used during previous trade disputes.

The move comes as Airbus firmly states it will not absorb tariff costs for US airlines, placing the financial burden on carriers if they accept direct European imports.

Key Points

• Delta is routing its new A350 through Japan to avoid classification as a new import and plans to use it exclusively for international routes

• Airlines like Delta and American have declared they won't pay additional tariff costs on aircraft deliveries

• Airbus covers tariffs only on components shipped to its Alabama facility, not on completed aircraft delivered from Europe

• The company is maintaining its 2025 delivery target of approximately 820 commercial aircraft despite these challenges

• CEO Faury has advocated for restoring the 1979 Civil Aircraft Agreement that previously allowed duty-free trade

What It Means

This tariff avoidance strategy reveals how global aviation companies can adapt to trade barriers while preserving critical business relationships. It also highlights the unintended consequences of trade policies on complex global supply chains.

But, as this approach continues, we may see permanently restructured delivery logistics becoming standard practice for US-bound aircraft.

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2. American Airlines Expands Chicago Hub With 7 New Winter Routes

American Airlines is adding seven new routes from Chicago O'Hare this winter, including five international destinations: Curaçao, St. Maarten, St. Croix, Guatemala City, and San José, Costa Rica.

The expansion, beginning November-December 2025, directly challenges United Airlines' dominance in Chicago, while enhancing American's winter sun offerings. Service will operate on a mix of mainline and regional aircraft.

3. US Lawmaker Cautions Ryanair Against Purchasing Chinese Jets

U.S. Representative Raja Krishnamoorthi has warned Ryanair against buying aircraft from Chinese manufacturer COMAC, citing security concerns and alleged ties to China's military.

The warning followed Ryanair CEO Michael O'Leary's comments about considering Chinese jets at the right price.

Ryanair responded that it would explore alternatives, including COMAC, if U.S. tariffs significantly affect Boeing prices.

4. Gol Airlines Secures $125M to Support Chapter 11 Exit Plan

Brazilian carrier Gol has struck a deal with key creditors for $125 million in new financing, bringing its total secured exit funding to at least $1.375 billion.

The agreement significantly increases the likelihood of the airline's restructuring plan being approved.

Additional investors can participate with up to $50 million available. Gol expects to emerge from bankruptcy protection by June 2025.

5. Airlines Tear Down Newer Aircraft Amid Worsening Parts Crisis

The commercial aviation industry faces an unprecedented supply chain crisis, with airlines resorting to dismantling newer aircraft for parts.

Engine issues, production backlogs, and labor shortages have forced carriers to adopt creative solutions to maintain operations.

These strategies include aircraft cannibalization, long-term planning, and innovative maintenance approaches to keep fleets airborne despite global parts shortages.

6. Alaska Airlines Welcomes Philippine Airlines As Its Newest Asian Partner

Alaska Airlines has announced a new frequent flyer partnership with Philippine Airlines, becoming the carrier's first loyalty partner in North America.

In the coming months, Alaska customers will be able to earn and redeem Mileage Plan miles on Philippine Airlines flights.

The partnership opens access to exotic Filipino destinations like Palawan and Boracay, with connections available from Alaska's West Coast hubs.

7. Airbus Helicopters Q1 Orders Surge 59% As Revenues Rise 10%

Airbus Helicopters recorded 100 net orders in Q1 2025, up 59% from 63 units in the same period last year.

Revenues improved by 10% to €1.6 billion ($1.816 billion), fueled by a slight increase in deliveries to 51 aircraft and growth in services.

The strong performance reflects solid demand across the product portfolio despite ongoing industry-wide supply chain challenges.

8. Amprius Launches Record-Breaking 450 Wh/kg Batteries for Electric Aircraft

Battery developer Amprius Technologies has released a higher-energy version of its SiCore lithium-ion battery for electric aircraft.

The new 450 Wh/kg cell represents an 80% energy increase over conventional batteries and a 22% improvement over its 370 Wh/kg predecessor launched in January.

The battery offers unmatched energy density with production-scale availability for aviation and electric mobility platforms.

9. Porter Airlines Launches Daily Toronto-LaGuardia Service

Porter Airlines has expanded its New York presence with new year-round service between Toronto Pearson International Airport and LaGuardia's Terminal B.

Operating up to three daily roundtrip flights beginning May 1, 2025, the route offers more choices for business and leisure travelers.

This complements Porter's existing service from Billy Bishop Toronto City Airport to Newark Liberty International Airport.

10. Saudi Arabia Opens Domestic Air Market To Foreign Charter Flights

Saudi Arabia's General Authority of Civil Aviation has lifted cabotage restrictions on charter flight operations, allowing international business and private jet operators to fly within the kingdom starting May 1, 2025.

Part of the General Aviation Roadmap announced in 2024, this reform aims to develop the sector into a $2 billion industry by 2030, supporting Saudi Vision 2030 objectives.