IHE BOTTOM LINE:
Published on 6th February 2015, 9:48
“In the aftermath of the Greek elections and the intensifying debate on how to deliver a dynamic economic program for Europe, we must not forget the power of air connectivity to create growth. Governments can kick-start economic development by reducing the passenger taxes that depress demand for air transport, costing jobs and prosperity. There are some positive signs. The Scottish government is promising to cut its air passenger duty by 50%. And Austria’s air transport levy is being evaluated as part of comprehensive tax reforms. Scrapping the Austrian levy alone could create some 3,300 jobs. That should help convince politicians in these countries to move from considering reductions to delivering results. High taxes, onerous regulation and infrastructure limitations make Europe a tough place to run an airline. A continent-wide commitment to address these issues so that aviation can play its critical role as an economic catalyst would be a powerful signal that Europe’s politicians really do mean business,” said Tyler.
