Delta loses $50 million tax break after NRA snub (but that’s not the punchline)

 

The discount for NRA members initially ranged from $5.60 to $18 per ticket, but now the cost of that discount has jumped to $3.85 million per ticket. Find out why!

Georgia Governor Nathan Deal signed a new tax bill into law Friday that fellow Republicans changed to punish Atlanta-based company Delta Airlines for dropping a special deal they offered to members of the National Rifle Association.

The bill, which focused on allowing tax breaks for corporations bringing the state in line with the new federal tax code, would have allowed a $50 million sales tax exemption on jet fuel. However, following the shooting a high school in Parkland, Florida which claimed 17 lives, Delta decided to drop ties with the organization which led to an angry backlash from prominent Georgia Republicans. (Fox 10)

 

CNBC reported that the discount for NRA members flying Delta ranged from $5.60 to $18 per ticket sold. Losing a $50 million tax break over ending the NRA discount might sound bad, but it gets worse.

Delta revealed that over the lifetime of the discount given to NRA members, that only 13 members actually had taken advantage of the deal.

 

Delta: NRA discount used for only 13 tickets

ATLANTA — Delta Air Lines said the group discount for National Rifle Association members that sparked controversy this week was used for only 13 tickets. The discount, which was for members to fly to their annual convention, was discontinued by Delta on Saturday, sparking controversy that led Georgia lawmakers to drop a tax break on jet…

 

The discount for those 13 tickets cost Delta approximately $153 dollars in revenue. Losing a $50 million tax break for those 13 tickets works out to about $3.85 million per ticket.

In retrospect, perhaps the least savvy business decision in the airlines long, troubled history.

 

* feature image courtesy Dosen Photo (this image has been modified)

 



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