German airlines boost ticket prices in response to new German ‘eco-tax’

Air Berlin said it has begun levying a new fee through all booking channels for travel beginning Jan. 1, 2011, in order to cover the “ecological air travel levy” introduced by the German government last week.

The levy ranges from €10 ($12.7), €28 or €50, depending on flight duration, (ATW Daily News, Sept. 3). AB noted that GDS systems began applying the tax to its flights over the past weekend, “even though the airline company had not taken any initiative in this respect.” It acknowledged that retroactively charging the fee to passengers who had already purchased tickets "would be very cumbersome."

AB also said in a statement that it is prepared to refund the tax should it "not be accepted in the course of the parliamentary decision-making procedure." AB vowed to “continue to fight against these charges.”

Separately, TUI Travel announced it will increase air fares to cover the new tax, which is expected to raise €1 billion ($1.27 billion) annually. Tax revenues will go into the general treasury and are not dedicated to environmental measures.