Delta Air Lines, Inc. (DAL) CEO Objects Ex-Im Bank Financing Foreign States’ Subsidized Carriers

Delta Air Lines, Inc. (NYSE:DAL)‘s CEO, Richard Anderson, was interviewed by CNBC’s Kelly Evans about the issues faced by the airline industry like increasing cost of air travel and his objections to the US government’s Export-Import bank.

Delta Air Lines, Inc. (NYSE:DAL)

Airfares have been seen to be steadily increasing for the past decade. But this factor has not deterred people from flying. Evans pointed out that, if anything, there has been an increase in the number of passengers taking flights and Delta Air Lines, Inc. (NYSE:DAL) seems to be flying with full capacity. She asked how much longer can this upward trend of airline fare can continue. Delta Air Lines, Inc. (NYSE:DAL) CEO did not seem worried by this fact.

 “It’s a very competitive market. So airfares are going to be determined by normal supply and demand and competitive factors in the market. If you look at true airfare including fees over the last decade adjusted for inflation, it is still one of the great bargains for American consumers,” Anderson noted.

When asked about his stand in the US export-import bank, he answered that his objection to it was very narrow.

“[...] We support the export-import bank for small industry, we support it for Caterpillar Inc. (NYSE:CAT). We support it for all the other industries. We have one narrow issue, which is, when our government finances very wealthy sovereign owned airlines that have access to private markets and they take jobs from people in the US, that’s our objection.”

The Delta Air Lines, Inc. (NYSE:DAL) CEO felt that problems were bound to arise when the government’s decision has a very tangible effect on US taxpayers. “It affects people here in Atlanta when a state-owned subsidized carrier like Air India receives subsidized government financing from our US treasury and from our employees’ tax dollars”, he was quoted saying.

Disclosure: none

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