Austria wants to set minimum price of 40 euros for plane tickets

The Austrian government announced on 9 June that it wanted to impose a minimum price of € 40 for airline tickets, a measure that aims to fight against the environmental impact of the sector.

The government also wants to impose a 30 euros tax on flights of less than 350 kilometres, a distance which could easily be done by train or other public transport.

The Austrian government announced on 9 June public rescue package of 450 million euros to help Austrian Airlines, a subsidiary of Lufthansa. But the aid was accompanied by environmental compensation, in particular the reduction of its CO2 emissions.

More surprisingly, the Austrian government wants to impose on airlines a minimum sale price of € 40 for a plane ticket. “It will no longer be possible to offer tickets that cost less than taxes and actual costs,” said Environment Minister Leonore Gewessler (Greens). In Austria on average, that means 40 euros. According to the minister, this measure is intended to fight against “social and environmental dumping” in the sector.

The measure is particularly aimed at low-cost airlines which, according to an industry specialist, “can sometimes take you to Barcelona for the price of two hours of parking“.

Ryanair, the leading European company in terms of passengers carried (more than 152 million in 2019), could be particularly concerned by the Austrian measure. The Irish low-cost airline wants to relaunch its business with a very aggressive pricing policy. The company is also criticised for its social policy.