A4E and ACI Europe have raised concerns about reports of the French Government considering further aviation tax increases to address national debt, warning that such measures could negatively impact the aviation sector and the wider economy.
The industry groups highlighted potential damages, including hampering France’s competitiveness and attractiveness, and affecting citizens financially due to cascading economic effects from higher taxes.
They also raised concerns that increased taxes could hinder the decarbonization efforts in aviation, limiting the sector’s ability to make necessary investments for achieving net-zero goals.
Citing examples from countries like Austria and Ireland that have reduced aviation taxes due to negative economic impacts, industry leaders called for more financial support for the aviation sector rather than additional taxation, emphasizing the need for sustainable economic strategies.
Olivier Jankovec, Director General of ACI EUROPE said: “Raising aviation taxes is the poster child of short-term thinking in politics. If confirmed, this new plan would inadvertently weaken the competitiveness of French aviation, penalise citizens and, ultimately reduce the sector’s economic contribution. As we have repeatedly pointed out, every 10pc increase in direct connectivity leads to a 0.5pc rise in GDP per capita. The French Government would de facto choose quick cash over durable economic competitiveness. This plan is even more concerning given the aviation sector’s ongoing transformation to meet ambitious net-zero goals – with the recent Draghi report acknowledging that European aviation will need €61bn every year to get there. If anything, more financial support from the government is what is required, not additional taxation.”
Ourania Georgoutsakou, A4E Managing Director said: “This proposal to increase French aviation taxes would be counterproductive, would fragment the single aviation market and would undermine the competitiveness of French aviation. Any short-term revenue gains the government expects would be far outweighed by reduced connectivity, poorer consumer welfare and would set back aviation’s decarbonisation efforts. Diverting funds from the industry through increased taxes ultimately means less investment in crucial decarbonisation measures.”
