They are against the taxation of air transport. The airline pilots union (SNPL) has called a strike and demonstration for Thursday in front of the National Assembly.
“Against the government’s desire to extract an additional billion a year from the airline sector, we call on pilots but also all employees of the airline sector to mobilize on November 14,” said a spokesperson for the ultra-majority pilots’ union. “We call for a demonstration near the National Assembly at the end of the morning,” it was added.
The National Assembly approved on Friday, as part of the examination of the draft budget, the increase in air transport tax proposed by the government. The amendment, which would increase aviation taxation by one billion euros to come into force on January 1, 2025, was adopted with 99 votes against 78.
The system will increase tax rates on airline tickets to all destinations, except the French islands and overseas territories, from 1 January 2025.
“Also an environmental objective”
On Friday evening, the director general of Air France-KLM Benjamin Smith reiterated his opposition and estimated that, by excluding the overseas territories and Corsica from this tax increase, the deputies have “recognized” the risks of such a measure for “the competitiveness of French companies”.
The SNPL denounces “a threefold increase in this tax, without any consultation of the sector’s stakeholders having taken place”.
“While many actors in the aviation sector are just recovering from the prolonged effects of the Covid-19 crisis period, this further imposition will ultimately lead to the loss of tens of thousands of jobs in France,” says the union, which asks the government to support it down.
On Sunday, Transport Minister François Durovray defended this tax increase on France Info: “This tax has both the merit of contributing to the recovery of the state’s finances, but also an environmental objective” due to the carbon emissions of air transport.
Inviting us to “work for a virtuous system”, he estimated that this tax could encourage airlines “to put more sustainable fuel into planes”, welcoming the efforts already undertaken by the French aeronautical industry, but without making progress as far as It’s about the availability of sustainable fuel.
Time.news Editor: Good morning, and welcome to this special segment on aviation and taxation. Today, we’re joined by Dr. Marie Lefevre, an economist specializing in the airline industry. Marie, thank you for being here.
Dr. Marie Lefevre: Good morning! It’s great to be here.
Editor: Let’s dive right in. The airline pilots’ union, SNPL, has called for a strike against the government’s plan to increase air transport taxes. What are the main concerns from the union’s perspective?
Dr. Lefevre: Well, the union is primarily concerned about the financial strain this tax increase will place on both airlines and their employees. It’s not just about the pilots; this affects everyone in the airline sector. They feel that this billion-euro tax hike, which will come into effect in 2025, could lead to job losses and reduced benefits as airlines try to cut costs to manage the additional expense.
Editor: The government argues that this tax increase aims to generate significant revenue. Can you explain the rationale behind this move?
Dr. Lefevre: Certainly. The government sees this as a way to tap into a lucrative sector that has rebounded post-COVID. They believe that this additional billion euros could be used for public goods or perhaps to fund environmental initiatives. It’s framed not just as a financial strategy, but also as part of an environmental objective. They potentially aim to encourage the airline industry to adopt more sustainable practices by making it costlier to operate.
Editor: That’s an interesting angle. However, how major airlines, like Air France-KLM, are reacting to this news?
Dr. Lefevre: Air France-KLM’s management has expressed their concerns very clearly. They fear that increased taxation will deter passengers, especially as the aviation sector is still recovering from the pandemic. Additionally, they might consider passing down these costs to consumers in the form of higher ticket prices, which could in turn affect demand.
Editor: Given that the tax would apply to most destinations, do you think this could lead travelers to reconsider their travel plans?
Dr. Lefevre: Absolutely. Increased ticket prices generally lead travelers to search for cheaper alternatives. We might see a shift in demand toward budget airlines or even increased interest in domestic holidays. This could disrupt market dynamics in the aviation sector quite significantly.
Editor: The pilots’ union is planning a demonstration near the National Assembly. Do you believe that mobilization efforts like this can alter government policy?
Dr. Lefevre: Strikes and demonstrations definitely bring attention to the issues at hand and can influence public opinion. However, it greatly depends on the government’s willingness to negotiate. If they perceive that the public supports the pilots’ cause, they might reconsider or at least modify their approach. But in the current political climate, it can be quite challenging.
Editor: looking ahead, how do you see the aviation landscape evolving if these tax policies are enacted?
Dr. Lefevre: If the tax is implemented, we could see a push for innovation within the industry as airlines work to remain competitive under tighter profit margins. We might also observe a stronger policy focus on environmental practices, driving airlines to invest in more sustainable technologies. However, the immediate aftermath will likely bring increased prices and a potential decrease in passenger numbers.
Editor: Thank you, Dr. Lefevre, for your insights. It appears the future of air travel will hinge not only on these taxation policies but also on how the industry responds to them. We appreciate your time today.
Dr. Lefevre: Thank you for having me! It’s a critical time for the aviation sector, and I look forward to seeing how this unfolds.