French Air Transport Tax Sparks Economic Concern

French airline industry groups warn that a proposed tax on air transport could harm the country's economy. The government's tax hike plan aims to address a significant budget shortfall. However, industry representatives caution that such measures would threaten competitiveness and decarbonisation efforts in the aviation sector.

French airline industry groups have raised alarms over a proposed tax on air transport, warning it could have dire consequences for the national economy. Prime Minister Michel Barnier's government faces a budget shortfall of approximately 60 billion euros and has announced targeted tax increases to stabilize France's finances.

Although details of an air transport tax are yet to be unveiled, media reports indicate such a measure is under consideration. The International Air Transport Association has called it a potential disaster, emphasizing that prosperity cannot be achieved through taxation.

Key industry groups like A4E and ACI are urging the government to rethink the proposal, warning it could hinder investment in eco-friendly initiatives. ACI Europe Director General Olivier Jankovec argues the move displays short-term political thinking that risks undermining French aviation's competitiveness.

(With inputs from agencies.)