Airline bosses are not going to be happy with the rehearsal... As soon as the increase in solidarity taxanother tribute is being studied by eight countries. This eclectic coalition brings together, alongside the Francethe KenyaBarbadosSpainSomalia, Benin, Sierra Leone and Antigua and Barbuda. The cornerstone of this alliance is the contribution from premium flyers to equitable transitions and resilience", according to the Elysée.
This "transformative initiative" was announced on the sidelines of the Fourth International Conference on Financing for Development, held in Seville. According to the press release issued by the Elysée, the coalition's mission is to " increase the number of countries applying taxes on airline tickets, including on premium travel, and tax private jets on the basis of best practice, while ensuring upward harmonisation and greater progressiveness in countries that have already introduced such taxes ". The new alliance is explicitly aimed at forward classes and business aviation, and is building on the success of the previous alliance. technical support from the European Commission.
Unsurprisingly, the International Air Transport Association (IATA) was quick to react to the announcement. Its leaders questioned the coalition's calculations, and in particular the amount that this tax could generate, which would be " approximately three times greater than the estimated worldwide profit of the airline industry ". In addition, IATA recalls the investments made by airlines and the objective of achieving carbon neutrality by 2050, " an effort that should cost 4,700 billion dollars between 2024 and 2050 ". Furthermore, IATA executives believe that the coalition does not take into account the role of the CORSIA system in offsetting and reducing carbon emissions for international aviation.
True to form, the head of the association was quick to throw in a few good words for those in favour of a new tax. " The airline industry is an economic catalyst, not a cash cow "asserts Willie Walsh. The Director General of IATA continued: " governments are suggesting, without batting an eyelid, that travellers should pay a tax three times the annual profit of the airline industry, without considering the practical repercussions for an industry that is vital to isolated communities, boosts tourism markets and links local products to global markets. What's more, although the details of the GSLTF (Global Solidarity Levies Task Force) proposal are not specified, it is clear that it will have a significant impact on the airline industry, history shows us that these taxes are simply paid into the Treasury, and that most, if not all, of the revenue generated is not earmarked for adaptation to climate change ".
Willie Walsh continued: " The GSLTF claims that its solidarity taxes will not increase the cost of living for ordinary citizens and will have no impact on household bills. This is not true. Ultimately, if followed, the GSLTF's recommendations will increase the cost of air travel for all travellers and will more harm than good. Taking tens of billions from aviation will cripple its ability to invest to achieve carbon neutrality by 2050, change the dynamics of routes to the detriment of connectivity and deprive countries of the essential economic support provided by air transport. ".
For Willie Walsh, this doesn't mean burying his head in the sand when it comes to sustainable development. Let's be clear, airlines are not shirking their share of responsibility for mitigating the effects of climate change. The industry is doing all it can to achieve carbon neutrality through sustainable fuels for aviation (SAF)The last thing these efforts need is a tax that deals them a fatal blow. The last thing these efforts need is a $90 billion tax to deal them a fatal blow. As far as air transport is concerned, the GSLTF's objectives could be better achieved by supporting investment in SAF production so that airlines can ensure prosperity by connecting people and businesses to global opportunities. "concludes Mr Walsh.
Olivier Jankovec, Managing Director ofACI Europealso criticised the project: " Taxing aviation is like shooting yourself in the foot in socio-economic terms, and is a counter-productive measure for both development and climate action. We cannot mince our words in denouncing this new proposal. It ignores the fact that precisely what distinguishes aviation from other sectors is its ability to support wider economic activity and generate a wide range of positive outcomes for society, from poverty reduction to gender equality and quality education. It will also hinder progress towards our shared goal of net zero emissions by diverting much-needed funds away from this sector. Targeting air connectivity by treating aviation as a cash cow is another symptom of governments' lack of long-term vision. ".
Coincidentally, just as this new tax proposal was being unveiled, Sweden decided to abolish its air tax from July. A decision whose timing is ironic, to say the least, in the country of Greta Thunberg and the flygskamwhich should keep Swedish skies competitive...
