8. December 2010 at 14:00

Austria changes terms of new air-passenger tax

The Austrian Finance Ministry has softened conditions for collecting a special tax on airline tickets after protests by local carriers. The fears of a possible outflow of passengers from Vienna Airport to MR Štefánik Airport in Bratislava (BTS) might also have played a role.

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The Austrian Finance Ministry has softened conditions for collecting a special tax on airline tickets after protests by local carriers. The fears of a possible outflow of passengers from Vienna Airport to MR Štefánik Airport in Bratislava (BTS) might also have played a role.

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The Austrian Government delayed the launch of collecting €8 for short-haul passengers, €20 for medium haul and €35 for long-distance travellers from January 1 to April 1 of next year. It also re-classified several countries into the lowest-fare group, including flights from Vienna to Armenia, Georgia, Syria, Lebanon, Israel and Egypt. The special tax on tickets should bring in about €60 million in 2011, the e-TREND financial news website wrote on December 7.

Both the original proposal and the amended final decision have faced strong opposition. National carrier Austrian Airlines Group called it economic nonsense; and the majority stakeholder in low-cost carrier FlyNiki labelled it stupidity and would not rule out transferring some of the company’s flights to Bratislava Airport.

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Opponents of the fees have pointed to what they say have been the negative experiences of other countries imposing a similar tax, for instance the Netherlands, where the move brought in an additional €300 million but reduced the country’s attractiveness as a tourist destination and resulted in billions in losses for the whole industry. As a result, the tax was eventually cancelled.

In Austria an outflow of customers to the benefit of Bratislava is now expected, mainly affecting charter and low-cost flights.

Source: TASR

Compiled by Zuzana Vilikovská from press reports
The Slovak Spectator cannot vouch for the accuracy of the information presented in its Flash News postings.

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