Ryanair Threatens French Airport Pullout Over New Airline Ticket Tax Hike

November 21, 2024
Ryanair Threatens French Airport Pullout Over New Airline Ticket Tax Hike
  • Despite Ryanair's warnings, French Transport Minister François Durovray downplayed the threats, suggesting that such announcements are common and often unfulfilled.

  • The French government is facing a significant budget deficit and has proposed tripling the solidarity tax on airline tickets, alongside increased taxes on private jet passengers, aiming to raise an additional one billion euros.

  • In response to the proposed tax increases, Ryanair has threatened to cease operations at ten regional airports in France, significantly impacting its service capacity.

  • Industry leaders, such as Thomas Juin, president of the UAF, have expressed concerns that these tax increases threaten to reverse two decades of growth in regional air transport.

  • Proponents of the tax increases argue that they are beneficial for public finances and the environment, as air travel contributes to 7% of France's carbon footprint.

  • Ryanair's commercial director, Jason McGuinness, indicated that the airline could reduce its capacity to or from French regional airports by up to 50% if the tax changes are enacted.

  • Currently, Ryanair operates 22 regional airports in France, including Beauvais and Vatry, but has not disclosed which specific airports would be affected by the potential service cuts.

  • The airline is grappling with challenges such as delayed deliveries of Boeing 737MAX aircraft and reduced demand, which are forcing price reductions and impacting profitability.

  • If implemented, these tax changes could take effect on January 1, 2025, prompting immediate reactions from airlines.

  • The French National Federation of Aviation has warned that the tax hike could lead to an average decrease of 2% in air traffic across France in 2025, with a more pronounced impact on low-cost carriers.

  • This situation highlights the broader implications of government policies on airline operations and regional connectivity, particularly for low-cost carriers.

  • In contrast to France's tax increases, other European countries like Sweden and Hungary are abolishing aviation taxes to attract airlines, raising concerns about competitive disadvantages.

Summary based on 5 sources


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