8.6.2010   (Reuters)

Airline industry body IATA lashed out at German plans to impose an air travel
tax while Europe’s aviation industry is struggling to make a profit amid a weak
economic environment.

“The proposal should be axed.   It is the wrong measure at the wrong time,” the
International Air Transport Association said on Tuesday.

German Chancellor Angela Merkel announced the tax plan on Monday, stunning aviation
industry executives gathering for IATA’s annual meeting in Berlin and planemakers
preparing for the opening of the Berlin Air Show on Tuesday.

“The most vulnerable part of the industry is in Europe. The last thing the industry
here in Europe needs is additional taxes and measures that will slow down economic
growth,” IATA chief economist Brian Pearce told reporters.

IATA on Monday raised its 2010 earnings estimate for the global airline industry
and said the only region in which airlines would continue to post overall losses
this year would be Europe.

The world’s airlines had their worst year ever in 2009, when demand dropped faster
than capacity could be cut as companies and consumers shrank travel budgets to
weather the global economic crisis.

The Americas and Asia-Pacific have started to recover, but Europe’s airlines
have been dogged by airspace closures, strikes and a weakening of the euro.

“European airlines are facing a pretty difficult time with weak economies and
governments seeking to generate revenues,” Pearce said.

German flagship carrier Lufthansa, which said the levy represented a “black day”
for the airline industry, will likely take the biggest hit, analysts said.

Commerzbank analyst Frank Skodzik said the burden for Lufthansa would be about
EUR€200 million a year, assuming the carrier is able to pass on half of the tax
to passengers.

Analysts and industry associations estimate the proposed tax could raise the
price of air travel by an average 8-14 euros per ticket.




see also


FACTBOX-Germany’s budget cut plans through to 2014  

7.6.2010     (Reuters)

BERLIN, June 7 (Reuters) – German Chancellor Angela Merkel said on Monday the
government aims to consolidate the federal budget by just over 80 billion euros
($95 billion) over the next four years.


Following are details of how the government intends to do this, including measures
that could face opposition, especially in the Bundesrat, the upper house of parliament.



The ruling coalition has earmarked additional revenues of one billion euros per
year via the introduction of a tax on air travel. From 2013 this sum might be
raised by including air transport in agreed carbon emissions trading standards,
the government said in the official draft of its plans.


The air tax would be imposed on all passengers departing from German airports,
and would be levied on criteria such as price, noise and consumption, the draft




Comment from a German AirportWatch member:

The German aviation levy will be a temporary one; just until aviation emissions
fall under the EU ETS (2012). But it helps the interim finance phase!

The Netherlands HAD an aviation charge; but it was ended when the economic crisis