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International Air Carrier Association

IACA reiterates calls to EU finance ministers to abort development tax

In view of the forthcoming meeting of EU Finance Ministers scheduled to discuss the concept of a development tax on airline tickets, the International Air Carrier Association reiterated its…

In view of the forthcoming meeting of EU Finance Ministers scheduled to discuss the concept of a development tax on airline tickets, the International Air Carrier Association reiterated its call for Finance Ministers to abort this demagogic initiative.



IACA Director General, Sylviane Lust commented: The impact of this tax on the travel market is substantially underestimated by all parties. Price is amongst the determining factors in demand, in particular for passengers of leisure airlines whose holiday represents the single largest purchase per year. Therefore any increase in ticket prices will negatively affect European demand.



Furthermore, in an environment where Member States and the Commission have committed to promoting European economic competitiveness, it is contradictory to introduce measures that would reduce travel.




IACA carriers believe that discussions on a development tax cannot be isolated from other burdens facing the aviation sector. The cumulative effect of soaring kerosene costs, environmental pressures and a development tax would be unbearable for many airlines.



IACA continues to recognise the importance of a genuine and structural development policy, but believes it is fundamentally unacceptable to use air travellers as a source of development funding. We are therefore calling upon the Finance Ministers of all EU Member States to abort this irrational initiative.

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