Tuesday , March 21 2023

Tickets for tickets of 10 euros are threatened by an irreversible end



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A second and a half euros per flight of every passenger in the European Union economy class, twice as much if the flight is outside the European Union is even greater for business class passengers – this is a proposal for a new environmental tax proposed by the French Ministry of Transport.

The explanation for this new tax is the effort to reduce emissions into the environment, they explained.




With the new taxes that France and Germany in particular defend, they want, as they said, to reduce carbon dioxide emissions into the environment.


With the new taxes that France and Germany in particular defend, they want, as they said, to reduce carbon dioxide emissions into the environment.
Photo: Boyan Pooh

International aviation fuel has been taxed for 70 years

For the same reason, they think in France as well as in the Netherlands of another tax that will fall on the passengers' airs – in fact, to eliminate the tax exemption that has been in the world for 70 years.

Since the end of World War II, world leaders have agreed not to levy aviation fuel – kerosene – for international aviation links to promote air transport.

For the great sadness of road hauliers and car drivers, fuels for all other modes of transport have never received such tax breaks.

The fuel cost of the pump is three-fifths for myth

On the contrary, in retail fuel prices, taxes and excise duties are the largest share. For example, in today's price of one liter of unleaded petrol, which amounts to 1291 euros per liter, the free-at-sales price is only 0.52365 euro per liter.




Three-fifths of the retail price of unleaded petrol is contributions and fees (in some countries this percentage is even higher).


Three-fifths of the retail price of unleaded petrol is contributions and fees (in some countries this percentage is even higher).
Photo: Matthew Leskovshik

The difference is at the expense of the carbon dioxide charge (less than 4 cents per liter), energy-saving additive (less than three quarters of a centimeter per liter), excise duty (almost 48 cents per liter), contribution to electricity production per liter) and value added tax, which is subject to even excise and other charges.

France and the Netherlands are the strongest to kerosene taxation

France and the Netherlands have also formally proposed to the European Commission to eliminate the tax advantage of aviation fuel in international traffic and to start taxing it.




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But the introduction of such a tax, as it says in Business magazine, will be very difficult and will require a lot of cooperation between countries that will certainly not want this new tax.

Letter of Ten Fields

We certainly will not want it even for passengers – in one of its June reports, the European Commission has estimated that even the lowest fuel tax would increase flights within the European Union by ten per cent.




Even the smallest new tax burden on aviation could increase ticket prices by 10%, according to the European Commission.


Even the smallest new tax burden on aviation could increase ticket prices by 10%, according to the European Commission.
Photo: Reuters

If this is added to the estimated environmental tax for each flight, it will be for flights of ten euros that are not received every day and for each connection, but they are not just a theoretical option, but it certainly means an end.

The demand for air travel is very steep

At the same time, the same European Commission report predicts that such a fiscal measure will cut emissions by 11% which, if it really does, will surely please the initiators and defenders of the Paris agreement of 2016




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Air transport contributes (only) a little over 2.5% of all global carbon dioxide emissions and strong demand for air transport is unlikely to reduce this. The volume of aviation has increased by 140% since 2000, Fortune says.

Lufthansa: "There should be no plane tickets under ten euros!"

Accidentally or not, today the executive director of the German (traditional) airline Lufthansa Carsten Spohr had something to say about the tariffs.




Lufthansa, the chief executive of the German airline, believes airline tickets are ten euros or less


CEO of German airline Lufthansa believes that airfare prices of 10 euros or less are "economically, ecologically and politically irresponsible".
Photo: Саржан Цвовович

"Air tickets with less than ten euros should not exist, such tickets are economically, environmentally and politically irresponsible," he told Bloomberg's business media.

Different models, different (basic) prices

Lufthansa, which also has its cheap Germanwings, suffers from the aggressive price war between airlines. Lufthansa's first husband, at his appeal, is probably losing the fact that low-cost carriers have a different business model that allows them to lower core prices more than traditional carriers.




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Finally, at t. I. low costs, and increasingly with traditional air carriers, passengers pay much more than the basic ticket price – due to various accessories, options and other ways to attract passengers for an extra charge.




Lufthansa also owns a low-cost carrier, Germanwings.


Lufthansa also owns a low-cost carrier, Germanwings.
Photo: Reuters

Already, fuel is already a quarter of the costs of air carriers

Airlines, of course, do not need additional taxes like incentives to protect the environment because they have long been a big reason for saving fuel – its price. This is followed by the ever-increasing fuel efficiency of the aircraft, according to some estimates, an average of 1.3% per year.

But excluding taxes, according to the latest IATA International Association report, fuel costs are almost 24% of all airline operating costs. These costs are the perfect excuse for air carriers (at least in part) to justify worse operations and possible losses.




At a distance of up to 500 kilometers, especially when there are high-speed trains (pictured on the French TGV for a quick train), the railroad is a time and price competitive with air transport, and the environment is definitely more acceptable.


At a distance of up to 500 kilometers, especially when there are high-speed trains (pictured on the French TGV for a quick train), the railroad is a time and price competitive with air transport, and the environment is definitely more acceptable.
Photo: Reuters

Simply reducing the demand for new taxes is not an ideal solution

The very impact on the demand for airlines is certainly not an ideal solution, as it also leads to job losses in airlines and therefore other problems and costs.




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Neither can it be expected that any other form of transport will provide a significant alternative over long distances and intercontinental transport. But for shorter European connections (up to 400 kilometers), especially where there is (as opposed to us) fast and efficient rail connections, it is certainly worth considering how to get passengers from environmentally friendly trains.




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