Yes to humanitarian action, says AEA, but not from a sector which already plays vital role…
Yes to humanitarian action, says AEA, but not from a sector which already plays vital role in developing economies.
The Association of European Airlines, representing Europe`s major carriers, has reacted angrily to a proposal from some finance ministers, at the latest G7 summit in London, to impose a tax on airline tickets to fund vaccinations in developing countries.
Said AEA Secretary General Ulrich Schulte-Strathaus: Of course we applaud humanitarian initiatives, but why target the airlines? Our industry is in the midst of a fundamental crisis. Our members are laying off staff and trimming their product to be able to offer the sort of low cost, low fare product the customers want, only to be once again confronted with a measure designed to increase our costs. We keep telling national governments in Europe that the airline sector is not an endless source of taxable revenue. Mr Schulte-Strathaus pointed out that the airlines performed an essential task in facilitating trade and tourism in the disadvantaged regions of the world. If the ministers were sincere about helping developing countries, they would be asking themselves how they could encourage, and not discourage, travel and tourism into these regions.
The proposal would turn airlines into tax collectors, he said, which raised the prospect of a bureaucratic nightmare. Tickets are sold worldwide, so the same journey could be sold in France, or Germany, or in a country such as the US which is opposed to such a tax. Just as likely, it could be sold on the Internet; which tax regime would be applicable then?
Politicians seem to cling to the notion that aviation is still a mode of transportation for the affluent few. AEA members carried more than 300 million passengers in 2004 and, at our most optimistic estimate, each one contributed on average just two Euros of profit.
Our ministers keep talking about the Lisbon Agenda, which is designed to promote European competitiveness, but these initiatives point to the contrary. The role of airlines should not be destabilised by an incessant array of additional imposed costs.
Theodore is the Co-Founder and Managing Editor of TravelDailyNews Media Network; his responsibilities include business development and planning for TravelDailyNews long-term opportunities.
