Plans to levy a tax on airline tickets to finance the Roissy CDG Express rail link risks impeding Air France’s competitiveness

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Following publication in the press of information about the plan to levy a tax on air fares to finance the Roissy-Charles de Gaulle Express rail link, Air France underlines the absolute need to create a fiscal framework allowing the Company to maintain the attractiveness of its commercial offer and therefore pursue its development.

The levy of a new tax on air fares, if implemented, would negatively impact the accounts of airlines operating on departure from and to Roissy-Charles de Gaulle, beginning with those of the French national carrier. In the low hypothesis of a levy of 1 euro per passenger, Air France would incur additional costs of 17 million euros per year from 2017.

In an extremely competitive air transport sector, such a measure would reduce the impact of the efforts made by Air France staff to improve the airline’s competitiveness.

Frédéric Gagey, Chairman and CEO of Air France, stated:

Air France supports the Roissy-Charles de Gaulle Express rail link project. But we are totally reluctant to the idea of guaranteeing, via a tax on airline tickets, the financial profitability of a project driven by other operators. To make investments, in other aircraft for example, Air France can only rely on its own resources – this rule must prevail in all areas.

Friday 26 August 2016

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