France Plans Airline "Eco Tax"

France airline eco tax

2020 would be the year in which France is planning to introduce an "eco-tax" ranging 1.5 to 18 euros for every ticket originated in France.

This was announced by Elisabeth Borne the French Transport Minister earlier this week.
The announcement was tweeted on her Twitter account and said:

A response to the ecological urgency and feeling of injustice expressed by the French, varies based on the type of ticket, according to the BBC.  
Domestic economy flights and those within the European Union, for example, are at the bottom end of the range, while business class tickets outside of the EU have the highest tax. It will not apply to flights landing in or connecting through France.

Air France in a statement said it "strongly disapproves" of the proposal and estimated it would add costs of more than 60 million euros per year for Air France-KLM.

"The new tax would significantly penalize Air France's competitiveness, at a time where the company needs to strengthen its investment capacity to more rapidly reduce its environmental footprint, notably as part of its fleet renewal policy," according to the statement. 

"The government's decision is all the more incomprehensible as this new air transport tax would reportedly finance competitive modes of transport, including road transportation, and not the energy transition in the air transport sector."

ICF Aviation Group VP Samuel Engel said Air France-KLM has "fairgrounds to complain" considering that France already subsidizes rail travel but said low-cost carriers would probably take the larger hit, considering the tax would represent a much higher proportion of their average ticket price. 

Other countries, including Germany and Sweden, already have introduced similar "green taxes," and Engel said more are likely on the way.

"This week's move comes in the context of a rising perception across Europe that air travel is an ecological taboo, even as it is increasingly a top priority for the industry," he said. 

"The public conversation seems to invite politicians to seize a taxing opportunity, one in which the tax can be partially 'exported' to foreigners and sluffed off on business or wealthier citizens."

France Plans Airline "Eco Tax"


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