US Airbus tariffs: airlines seek Mobile (AL) as short term solution

US airlines that operate all Airbus fleets or have order books dominated by the European airframer have been able to breathe a sigh of relief during the continuing turmoil triggered by the worldwide grounding of the Boeing 737 MAX - until recently.

As part of a years-long trade dispute over alleged subsidies provided to Airbus, the US has won authority to impose a 10% tariff on Airbus aircraft, which is creating uncertainty for US airlines that have deep order books for Airbus jets.

The short term solution is a huge push by those operators to take delivery of aircraft assembled at Airbus' US assembly site in Mobile, Alabama. But ultimately the US and Europe need to reach an agreement that ensures airlines, and possibly consumers, do not bear the brunt of those tariffs.