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IATA Disapproves
German Aviation 1 Billion Tax Plan
By
Shane Nolan |
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June 9, 2010 - The International
Air Transport Association (IATA) reacted sharply to the announcement
made by the German government of a EUR 1 billion annual burden on
aviation with a new departure tax in Germany. The tax is branded as an
environmental initiative.
“This is the
worst kind of short-sighted policy irresponsibility. It’s a cash-grab by
a cash-strapped government. Painting it green adds insult to injury.
There will be no environmental benefit from the economic damage caused,”
said Giovanni Bisignani, IATA’s Director General and CEO.
His remarks
were made in front of industry leaders gathered in Berlin as the 66th
IATA Annual General Meeting and World Air Transport Summit drew to a
close. |
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Bisignani highlighted three major concerns with the German proposal.
“The proposal should be axed. It is the wrong measure at the wrong time;
and it ignores the lessons learned from the failure of a similar tax in
the Netherlands.”
The wrong measure “Climate change is a global issue. The solution
requires a global approach, not uncoordinated regional taxes. What will
this do for the environment? Absolutely nothing. If the Chancellor is
serious about aviation and climate change, the focus should be on
finding a globally coordinated solution at the International Civil
Aviation Organization in advance of the climate talks in
Cancun.”
The wrong time “Airlines have an important role in driving economic
growth, particularly as we struggle to recover from the recession. This
is not the time to burden the aviation industry with more taxes.
European GDP growth is expected to be 0.9% this year—the lowest among
the world’s major regions. Operating in this environment, Europe’s airlines will be the only region in the red with
losses of $2.8 billion. This tax is a body blow to the weak economy and
a fragile industry. And it is a kick in the teeth to travelers at a time
when they can least afford it.”
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