Delta Air Lines (DL, Atlanta Hartsfield Jackson) has welcomed the recent decision by the Governor of Georgia Nathan Deal to suspend the collection of the state tax on jet fuel effective immediately.
The carrier stands to be the largest beneficiary of the tax break as it has a 78.9% market share by frequencies at Atlanta Hartsfield Jackson, the largest airport in Georgia. According to the ch-aviation capacity module, Delta operates 7,116 weekly departures out of the gateway.
"With 33,000 employees in Georgia, we are honoured to call this our home state, and proud of the USD58 billion in economic impact that Hartsfield-Jackson Atlanta International Airport creates statewide every year. The savings will allow us to invest additional flights into Georgia in the years to come. We look forward to the continued growth of our service in Georgia and the job creation that will accompany it," CEO Ed Bastian said.
The local tax on jet fuel at Atlanta was suspended as of June 1, 2018. The two levies combined cost Delta alone some USD40 million annually.
The state of Georgia collected USD38 million from the state tax on jet fuel in the last fiscal year.
The suspension will be in effect until the state General Assembly scheduled for January 2019 which will decide whether to reinstate the levy or scrap it permanently.
The tax break was initially proposed earlier this year. However, the state legislature decided to keep it in place after Delta cut ties with the National Rifle Association in the wake of a February mass shooting at a Florida school. Brian Kemp, the current Secretary of State in Georgia and the Republican gubernatorial candidate in the November elections, earlier criticised the airline for this move and advocated against scrapping the tax.
