Ryanair Threatens French Airport Pullout Over New Airline Ticket Tax Hike
November 21, 2024Despite 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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Sources
Aviation Week Network • Nov 21, 2024
Ryanair Warns Of French Route Cuts Over Planned Airline Tax Increase | Aviation Week Network