Franchise News

Delta Airlines to Leave Industry Trade Group, Airline Not Aligned with Group on Key Issues

Oct 28, 2015 12:10 AM EDT | By Jean-Claude Arnobit

Delta Air Lines Inc. announced in their own press release that it has notified Airlines for America about its plans to leave the trade group next year, saving about $5 million from the annual membership fee.

The airline said that the trade group has not supported it in recent years regarding several key issues.

Delta said in their press release that the Airlines for America didn't support them in their opposition of the government's subsidizing carriers in the Middle East.

The airline said that the continued subsidy has been a growing harm to the company.

Delta adds in their own press release that they also didn't agree with Airlines for America's stand that the country's air traffic control be separated from the Federal Aviation Association.

The trade group wants air traffic control put into a private organization.

Nicholas Calio, the president and CEO of Airlines for America, said in a press release issued by the trade group that they weren't surprised by Delta's move.

"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," he said.

Calio adds in their own press release that the pending change will not distract Airlines for America and its members in their continuing fight against higher taxes and unnecessary regulations.

He said that they are also pushing for updated infrastructure and other technical and regulatory issues.

The Wall Street Journal adds that Delta's departure reduces the members of Airlines for America to nine big airlines, which includes three cargo carriers.

Among the passenger airlines that are still members are  American Airlines Group Inc., United Continental Holdings Inc., Southwest Airlines Co., Alaska Air Group Inc., JetBlue Airlines Corp. and Hawaiian Airlines.

The Wall Street Journal adds that the departure of Delta, the third-largest passenger carrier by traffic is a blow to the trade group.

The loss of Delta could weaken Airlines for America's lobbying efforts.

Airlines for America said in their press release that Delta's departure will be effective on April 26, 2016.

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