La FNAM and the UAF have joined forces to alert public decision-makers to the dangers of excessive taxation a vital sector for the economy and employment in France.
A study by Deloitte analyses the impact of air transport and restores its importance in the current context the tripling of the Solidarity Tax on Airline Tickets (TSBA).
An essential contribution to the French economy
The study, commissioned by the sector's two leading trade bodies, comes against a backdrop of intense tension due to the increase in this tax, which could cost 11,500 jobs in France by 2025 due to a slowdown, or even a decline, in air traffic. And therefore a loss of connectivity for the country's territories.
The Deloitte study sheds some light on this issue: the air transport sector in France supports 567,946 FTES (direct, indirect and induced jobs), generates 52 billion in value addedequivalent to 1.8% of GDP which is comparable, for example, to the accommodation and catering sector. The report also details the catalytic effects of aviation on tourism, exports and territorial continuity.
By way of example, 37% of receipts from international tourists in France23 billion, came from passengers who arrived by plane. In terms of tax revenue for the StateThe sector's contribution of more than 12 billion eurosis substantial and is comparable to budget of the Ministry for Ecological Transition, Energy, Climate and Risk Prevention.
Traffic down by 2% in 2025?
In addition to the presentation of the study, the players in the sector pointed out that the proposed new tax would make France, along with Germany, is the country that taxes its air transport the most in the European Union. La FNAM warned of the loss of competitiveness of airlines based in France, the destruction of jobs in the sector and the loss of attractiveness of France compared to its European neighbours. The same consequences were observed in Germany when a similar tax system was introduced..
Airline operators also emphasise the major risk of France losing its appeal as a tourist destination compared with its European neighbours.
According to FNAMthe implementation of the new TSBA scale could lead to a reduction in traffic in 2025 of 2% on average across the country and much higher at certain airports. Based on a conservative assumption of an average traffic reduction of 2%, the new tax would lead toWithout taking into account the catalytic effects on the rest of the French economy, the destruction of 11,500 jobs and a loss of over €500m in tax revenue for the State.
The companies in the French Pavilion are already subject to heavy taxation and are not in a position to bear any more, they will have no choice but to pass on the cost of this additional tax in their ticket pricesThis is a move away from the democratisation of air travel.
The UAF, for its part, has warned of the forthcoming closure of many air routesThis is due to the new tax burden, by low-cost airlines which currently serve most or all of France's regional airports and for which price sensitivity is extremely high. This destruction of connections at regional airports will considerably weaken regional connectivity and the tourism economy, and will reduce the number of businesses located in the regions. UAF also pointed out that the main consequence of the disappearance of business aviation would be the departure of many companies from the regions.
When the TSBA contributes to the ecological transition according to the government
The government is trying at all costs to justify tripling the tax, using rather spurious arguments. The new Minister for Transport, François Durovray, explained last Sunday during an interview on Franceinfo, all the merits of this tax increase ". This tax has both un virtue of contributing to the recovery of the State's accounts, but also an environmental objective emissions from aviation", he explained to his interviewer.
" What I want, is that we can work towards a virtuous systemIn other words, these taxes should be used to show how airlines can be encouraged to use more sustainable fuel in their aircraft, and the government should encourage airlines to do this. The long-term challenge [of this tax increase] is that the aeroplane is more virtuous from an environmental point of view"he said.
Except that, a priori, there is no cause and effect relationship between the increase in the TSBA and the fact that air transport generates less CO2. Except for reducing air traffic by discouraging passengers from taking the plane because of the price.
In fact, according to the FNAM and the UAP, the increase in taxation will have a negative impact on airline profitability. And therefore on their investment capacity. It would seriously limit the ability of the French flag to finance the ecological transition that has been underway for several years.
Despite investment in fleet renewal and sustainable fuels, industry representatives deplore the lack of consultation and sufficient support to speed up this transition. They are calling for the sums collected through taxes on air transport are finally reinvested in ecological initiatives for the sector.
