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Air France-KLM CEO opposes proposed French airline ticket tax

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Air France-KLM CEO opposes proposed French airline ticket tax
Policy
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Air France Boeing | Wikimedia

Ben Smith, CEO of Air France-KLM, has expressed opposition to the proposed taxes on airline tickets in France. In an interview with La Tribune, Smith described the idea of raising the solidarity tax on airline tickets as "irresponsible." He noted that a similar proposal was attempted by the previous government, which collapsed in December 2024.

The new Prime Minister of France, François Bayrou, is seeking ways to reduce the budget deficit through spending cuts and increased taxes. The proposed tax could raise up to €1 billion from French flyers. If approved by Parliament, France would have the highest airfare taxes in Europe. Smith stated that if the levy passes, he hopes the revenue will be used for decarbonizing France's aviation industry.

In November 2024, Air France warned about an amendment to increase this tax starting January 1. The company decided to pass this potential cost onto customers in advance from October 24, 2024. However, since the bill did not pass, Air France suspended this collection and committed to refunding passengers if necessary.

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Smith is not alone in his stance against air travel taxation in Europe. Carsten Sphor, CEO of Lufthansa Group, also criticized such measures citing reduced traffic as a consequence. The International Air Transport Association (IATA) similarly opposed Germany's increased aviation taxes.

The debate over these taxes continues as governments balance environmental concerns with economic competitiveness.

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