“The State is in the red and it will lead us (the air sector, editor’s note) » thundered Thomas Juin, president of the Union of French Airports (UAF) during this press conference. “We are dealing with a State which sorely lacks vision on the French air sector and what it brings to the country!” he continues. After the airlines Air Caraibes and French Bee) of the Dubreuil group and Air France through its president Ben Smith, it is the turn of the National Federation of Aviation and its Trades (FNAM) represented by Pascal de Izaguirre and the Union of French Airports (UAF) chaired by Thomas Juin to react to the air sector tax bill, planned for the Government.
Established in 2006 to finance the international organization Unitaid to fight AIDS, tuberculosis and malaria, this tax, which varies between 2.63 euros for a flight departing from France to a destination in the EU or DROM in economy class for more than 60 euros for a flight outside the EU and DROM in business class. On October 1, the Minister for Transport, François Durovray, announced that this tax could be increased. Bercy confirmed on Thursday the target of additional taxation of one billion euros for air transport in France, during the presentation of the 2025 finance bill (PLF).
Pascal de Izaguirre underlines that in view of the first elements, the sector “would bear 55% of the proceeds of this tax while air travel represents 6% of CO2 emissions in France. It is disproportionate and counterproductive, on the taxation that we should suffer“. He denounces the absence of an impact study on the repercussions of this new taxation, which would further burden the French aviation sector, “already heavily taxed”. Consequences among others in the long term according to the president of the FNAM: a loss of global competitiveness, an air shift to foreign hubs, a positioning of planes towards other European countries, reduction of frequencies or even elimination of certain routes.
What impacts for Overseas Territories?
In a context where the high cost of plane tickets to and from overseas is often called into question, the announcement of an increase in the solidarity tax had already alerted certain airlines serving overseas territories. Like Air Caraibes and French Bee who highlighted a threat on “the competitiveness of French companies and accessibility to air transport, both for overseas residents and for international travelers. In a press release, the Réunion Region “called on the government to take into account the particular situation of overseas territories” and pleaded for connections between mainland France and overseas territories to be exempt from the increase in this tax.
The president of the FNAM Pascal de Izaguirre and the president of the UAF Thomas Juin share this observation of a “fiscal shock impoverishing air transport”. The two presidents appear skeptical about an exemption from this tax on plane tickets for overseas territories. “It is not possible to exempt overseas territories. These are European rules. The former government tried and failed. It is up to the government to measure all the consequences of taxes which could weigh heavily on certain destinations.”, added Pascal de Izaguirre.
For his part, Thomas Juin, president of the UAF, recalls that this taxation could lead to a loss of significant resources for local authorities, dependent on tourism. Based on a study of the impact of European and French environmental measures on overseas connections, commissioned by the UAF and the FNAM ahead of the announcement of this new government tax, Thomas Juin draws up very pessimistic forecasts for the regions overseas in the coming years. First of all, the study expects a reduction of 14.4% in 2031 and 18.7% in 2050 in demand for flights from France to the overseas territories. At the same time, the study highlights an increase of 20.7% in ticket prices in 2031 and 26.9% in 2050. “When we impoverish air transport, we impoverish the tourist sectors in the regions. For Guadeloupe alone, this represents 61 million euros in tourism losses in 2031,” warns the president of the UAF.
Request for consultation
“What we are asking for is first of all a real consultation, because for the moment, there has been none”declared the president of the National Federation of Aviation and its Trades (Fnam), Pascal de Izaguirre. With Thomas Juin, the president of the FNAM wanted the impact study to be devoted to the “merits and consequences” of the taxation, and not to its “modalities of application” as mentioned by the government. “Taxing the airline sector also means taxing passengers,” concluded Pascal de Izaguirre, President of the National Federation of Aviation and its Trades (FNAM).
