Delta Airlines CEO Edward H. Bastian and American Airlines have been in a heated battle since Delta bought out the bankrupt US Airways last year, with each airline trying to show off their environmental credentials. The fight has largely taken place on Twitter, but it seems that this week is going to be different as one of them finally takes an outright jab at the other’s stance.
The “delta airlines ceo salary” is a tweet by the outgoing American Airlines CEO, who took a jab at Delta on the environment.
On the environment, American Airlines’ outgoing CEO takes a shot at Delta.
on January 23, 2022 by Gary Leff
Delta has long emphasized its environmental credentials, highlighting its membership in the Dow Jones Sustainability North America Index year after year. However, in statements to staff during the company’s fourth quarter results call on Thursday, which View From The Wing read, departing American Airlines CEO Doug Parker took a shot at Delta over this index.
During a review of the fourth quarter’s highlights, Parker informed colleagues that American had been added to the index. It’s the only airline that flies passengers. And that implies they “kicked Delta out.”
We’ve been included to the Dow Jones Sustainability North America Index as the sole passenger airline, which is a mouthful, but here’s what it means. Some consumers wish to invest in funds where they know the stocks are committed to long-term sustainability.
So the Dow Jones goes through and picks firms that they feel represent the finest in each area in terms of sustainability, and they added American Airlines to that index – which, by the way, omitted Delta – and included us.
Delta said just before the outbreak that they will be carbon neutral by March 2020. However, they did it mostly via the magic of carbon offsets, which often accomplish nothing and even increase carbon production.
Parker has previously slammed United in a staff meeting over the environment, claiming that they fly older, less fuel-efficient aircraft than American.
While biofuels may have a future, they are now unworkable and primarily a gimmick. United has concentrated on such methods, but they’ve also engaged in direct carbon capture, which involves physically removing carbon from the environment. That technology isn’t quite there yet, but it has potential if enough firms invest and the cost can be reduced.
Companies benefit from being included in ESG funds since it increases demand for their shares. When everything is going up, it’s simple to invest based on environmental, social, and governance factors. Given, we’ll see how popular these funds are in a down market.
- ESG funds necessarily give up returns for other goals. That’s fine and appropriate as far as it goes, but it’s not how these funds are usually sold. If you’re taking profitable investment opportunities off the table, you’re necessarily going to do worse than you’d otherwise do with an investment portfolio. Non-ESG funds can invest in all of the same vehicles if they’re the most profitable, plus other profitable investments that these funds cannot touch.
- And you’re creating profit opportunities for other investors. By ignoring investment in non-ESG companies you’re leaving those on the table and indeed making them more attractive to other investors by not bidding up their price and competing down their returns.
- Most ESG funds don’t really put their money where their mouth is by not shorting non-ESG companies.
It’s admirable for an investor relations staff to propose a firm to these funds, but American seems to behind United in terms of investing in a green portfolio, not to mention being awake in general.
It’s not the first time Parker has criticized Delta in employee remarks.
More From the Wing’s Perspective
The outgoing American Airlines CEO took a jab at Delta on the environment. He said that he was not going to be “bullied by Delta” and that his company would continue to fly for the sake of flying. Reference: united airlines ceo.
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