Germany confirms new environmental tax on passengers

Lufthansa has criticized Germany’s new air passenger duty tax. Photo: Courtesy, Airbus.

The German government approved a highly criticized air passenger duty tax, which took effect Wednesday for bookings beginning Jan. 1, 2011.

The "ecological air travel levy" was included in a package of government spending cuts introduced earlier this year by Chancellor Angela Merkel, who has maintained that Berlin needs to slash spending by €80 billion ($101.5 billion) by 2014 to alleviate the nation's shaky fiscal situation (ATW Daily News, June 9).The new tax is expected to raise €1 billion ($1.27 billion) annually.

German Finance Minister Wolfgang Schaeuble said he does not expect that airlines will suffer from the tax. Instead, he said, carriers will pass it on to their passengers. Passengers boarding flights in Germany will be charged €8 for domestic and intra-European short-haul flights, €25 for medium-haul flights and €45 for long-haul flights.

The German Airport Assn. criticized the new tax, which it believes could mean the loss of thousands of jobs in the country's aviation industry. Lufthansa said the fee will weaken Germany's airlines by encouraging passengers to bypass the country. The Netherlands (ATW Daily News, Feb. 8, 2008) and Denmark (ATW Daily News, Nov. 9, 2005) both tried similar taxes before dropping them after seeing travelers bypass their airports in favor of lower cost alternatives in near-by countries.

Discuss this news 31

01 Sep20:03

I am a passenger and I will

By AL

I am a passenger and I will pay the fee more than happily if translates in ecological measure meant to reduce carbon emissions. It hsould implemented across Europe. We have to understand that if we pollute we have to pay. It may mean the loss of jobs...but if we do not do anything it will have a even worse impact in the econ0my in the long run

01 Sep20:11

I might speak out of

By Anonymous

I might speak out of ignorance but as long as I know airlines are not the biggest polluters. Does an ecological tax exists on car owners? What about other big polluters in other industries, do they pay an ecological tax?
Just wondering....

01 Sep20:15

AL..This is big government

By Retired Air Line Emp

AL..This is big government greed, pure & simple and will further harm the airline industry. Now that it's been proven that "Global Warming" is a leftist hoax, there is little need to continue these types of confiscatory taxes!

01 Sep20:19

You didn't read the article..

By Anonymous

You didn't read the article.. this tax will go to German coffers to be spent as they see fit. It's merely a revenue source to counter budget cuts elsewhere. They can call it what they want but I have yet to see a Government that actually spends money on what it's intended for. Tax, Tax, Tax.

01 Sep20:45

The German government calls

By pgwrox

The German government calls it a "ecological air travel levy", but it seems it will be used to prop up the "nation's shaky financial situation"; if that is the case, then the government is extremely hypocritical. Couldn't the airlines -as well as passengers, band together to ensure the government uses the revenue for environment improvement purposes, or otherwise kill this tax grab?

01 Sep20:49

Yes, I will avoid travel

By Steven

Yes, I will avoid travel through Germany if this tax makes the trip more expensive. I already avoid the U.K. because of their Air Passenger Duty.

01 Sep21:06

Wow - another foolish tax on

By Fabo

Wow - another foolish tax on air travel. Yes, I will avoid Germany - AMS and Schiphol airport are superb anyway and now without having to pay and extra $50 why would I go to FRA/DUS/MUC??? Danke-Schoein and Auf Weiderschein!

01 Sep22:19

The GHG emissions from

By Anonymous

The GHG emissions from airlines industry is actually very low at 2% from the total emissions. It's just another excuse of the government to increase their income!

02 Sep00:52

Looks like I'll be connecting

By vm

Looks like I'll be connecting via other cities in Europe other than in Germany.

02 Sep01:02

Environmental taxes are a

By Steve

Environmental taxes are a misnomer, and purely a licence for Governments to print money. The Airline business faces massive challenges and these fare increases do nothing to stablise the already shaky positions of many airlines and their employees. I personally used to fly a lot via Frankfurt and Munich.... I will use Schipol in future without a doubt.

02 Sep01:28

There is really NOTHING green

By KV

There is really NOTHING green about this tax ... All the proceeds are generated in order to flow into Germany's budget coffers. If ever someone has read the smallprint and discovered that Germany will allocate these new financial ressources to (green) research and development, please speak up. I did not find it.

02 Sep02:00

another paradox of the

By TJ

another paradox of the Germans trying desperately to cover up a bit of thier huge budget deficit.... there environmental extremes are surely going to extremes I would say..but this again is typical Germans!!!!

02 Sep02:32

If you read carefully, the

By Anonymous

If you read carefully, the proceeds from the new tax are to alleviate the deep German fiscal crisis. There is no provision anywhere in that law that states it will be used for environmental improvements whatsoever.
I know that I will be rescheduling my stops to bypass German airports.
Totally agree with KV posting.

02 Sep03:42

I wonder if this means that

By Andreas

I wonder if this means that LH Group will shift LH capacity to OS, LX and SN.

02 Sep03:50

I totally agree with this

By Airline worker

I totally agree with this comment. Governments always find the way to make the airlines become their tax collectors without any consideration about the effect of that roll on their own (damaged) economies. In that case, I see a big amount of hypocrisy for calling this an Environmental tax when is made (as mentioned in the article) "to alleviate the nation's shaky fiscal situation" and the funds will never be used on "environmental causes"

02 Sep03:51

Auf Wiedersehn Ryanair!

By CBD

Auf Wiedersehn Ryanair!

02 Sep04:09

Isn't it strange, while the

By Bob

Isn't it strange, while the German Government were enlightened first movers in the down-turn with their 'cash for clunkers' initiative for their automobile industry, that when it comes to aviation they do the opposite. With a 'green tingend shroud' they unilterally impose another tax on an industry that labours under a huge burden - utterly oblivious to the economic leakages these taxes create. The UK Government suffers the same shortsightedness. We must hope that other governments are more enlightened.

02 Sep04:26

I agree with KV! These lousy

By Frank

I agree with KV! These lousy politicos jeopardize the aviation industry although it has not quite recovered from the latest crisis. But no, Mr. Finance Minister does not give a damn. And to relate it to GREEN issues is just an insolence that is hard to swallow. We can only hope that these guys will be voted down next time and the new government breaks off that tax.

02 Sep04:56

Auf Wiedersehen, Germany!

By skyward

Auf Wiedersehen, Germany! You will not fix the environment with this! It is only for your greed for some new form of revenue to pay your debts. What next? A church tax? Oh wait, you already have that one! I'll be flying in/out of another country! Danke!

02 Sep04:56

What planet do you live on.

By PKenny

What planet do you live on. It is just another tax and will be counted as revenue. You have no idea where it will be spent. another nail in Germany's tourist industry

02 Sep05:22

you commenters... you can

By The Fons

you commenters... you can still connect through germany without having to pay the tax, it's only for passengers departing from Germany (incl. return flt departures).

02 Sep06:02

Did Barack Obama move to

By Anonymous

Did Barack Obama move to Germany? (I certainly hope so)

02 Sep06:31

As Jeremy Clarkson pointed

By K-O

As Jeremy Clarkson pointed out in 2007 the 'EarthSave' organisation reported the blindingly obvious, the gas Methane which cows emit [in two senses of that word] is 21 times more powerful as a greenhouse gas than carbon dioxide.

In consequence farmed animals are doing more damage to the environment than all the world’s transport and power stations put together.

Will the German Government tax their farmers, or abolish dairy farming? I think not!

If the voter reacts to this tax on their travel masquerading as eco friendly then a real outcome will be achieved.

02 Sep06:31

It's a rip-off, not less.

By Anonymous

It's a rip-off, not less. This has NOTHING to do with 'green' measures.
1) A legal expertise has been published earlier this week in Germany saying the proposed tax is illegal and violates both German law and EU regulations. The German government, nevertheless, decided to introduce the proposed tax with immediate effect, levvied on all ticket sales for Jan1st, 2011 onward flights
2) Germany already HAS an "eco tax" imposed on fuel (on top of fuel tax and VAT.This Eco tax goes into Germany's bankrupt retirement insurance scheme.
3) The germans simply must find ways to increase raxes in order to cope with their debts and mounting EU obligations, that what this is about.

02 Sep07:00

I think governments believe

By Anonymous

I think governments believe people will accept these "green" taxes because everyone wants to be seen as environmentally conscious. But this is nothing more than a gouge on airline travelers. In general, you tax things you wish to discourage - cigarettes for example. This tax will have the same effect. People will certainly avoid long flights out of Germany, and Frankfurt will feel the loss.

02 Sep09:06

This will influence Qantas's

By Janos

This will influence Qantas's decision on its new hub in Europe. (Berlin was said to be the most likely new hub instead of London.)

02 Sep09:53

Fuel Taxes already impose a

By Flying Friend

Fuel Taxes already impose a levy. This is a tax on a tax to simply grab more revenue for the government. It does nothing to make aviation "cleaner." Fuel taxes are a consumption tax and highly proportional to the environmental effect of fuel use.

02 Sep10:52

LH Management is Top Notch

By reece

LH Management is Top Notch and they will certainly shuffle things around with subsidiaries like Austrian (flights to Eastern Europe) Brussels and Swiss (flights to Africa) and such. Infrastructure established in FRA will see to it that this TAX is repeeled. LH lost the title of largest Int'l Carrier to Emirates........the German's will not sit idle for long.

02 Sep12:41

Goodby germany,hello spain &

By steven

Goodby germany,hello spain & italy.I have avoided the uk for years and now add the peoples republic of germany.

03 Sep07:27

The Netherlands tried a

By Dinant van den Belt

The Netherlands tried a similar tax 2 years ago, tax was withdrawn within a year, when it became clear that german and belgian airfields also could be used by the dutch. Same will happen in Germany.
At the other hand, don't blame the German gouvernement, blame the banks, who brought this upon us.

03 Sep23:10

You seem to be a typical

By Anonymous

You seem to be a typical "kraut" from the DDR and not a reaso-nable and brain-using citicen of deutschland.

Wanninger

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