It is coming from all directions, it seems. New taxes, new efforts to add billions to government coffers at the airline industry's expense.
In 2010 there were $3.6 billion in passenger tax increases, said Athar Husain Khan, deputy secretary general of the Association of European Airlines.
The UK's Air Passenger Duty, which is already depressing traffic, is expected to rise 9% again in November, a move which Khan said will have "a detrimental effect on growth and the airlines' ability to invest".
"The impact is devastating, and it's hurting the regional airports even more," added Olivier Jankovec, director general of the Association of European Airlines. "We see [new taxes] as the biggest threat to growth. In Austria, Vienna is growing but the others are not."
"In Latin America, about 50% of all the taxes go to general government accounts, and the industry loses that investment," said Alex de Gunten, executive director of the Latin American Air Transport Association.
Vijay Poonoosamy, vice-president international and public affairs for Etihad Airways, said "air transport needs to be encouraged, not pushed back".
He noted that when an attempt was made to collect €312 million ($417 million) in new taxes in the Netherlands, it would have cost the country €1.2 billion and the tax was rescinded.
"We are preaching to the converted," Poonoosamy said. "We need to reach out to finance ministers and to the public."
Khan said politicians "take it as a given" that airlines can weather any tax increase.
Charles Schlumberger, lead air transport specialist at The World Bank, said a now-public analysis by his group identified $16 billion in new aviation taxes out of a $100 billion fund that could be created for developing countries.
"Can you take another $16 billion?" he asked.
Source: Flight Daily News
