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Departure Tax To Help Or Hinder German Economy  
User currently offlineSchmidt505 From Germany, joined Jun 2010, 5 posts, RR: 0
Posted (3 years 9 months 2 weeks 6 days 16 hours ago) and read 2111 times:

In early June, the German government announced plans to introduce a new tax on all departing passengers from German airports with the aim of generating around one billion Euros per annum to help plug the country’s deficit. Given that Germany’s airports handled around 180 million passengers last year, that would indicate an average tax of around 11 Euros per departing passenger.

Is this new tax going to help or hinder the German Economy?

[Edited 2010-07-02 02:24:43]

[Edited 2010-07-02 02:25:37]

6 replies: All unread, jump to last
 
User currently offlineBurkhard From Germany, joined Nov 2006, 4360 posts, RR: 2
Reply 1, posted (3 years 9 months 2 weeks 6 days 15 hours ago) and read 2069 times:

It doesn't make a big difference. A few people less will fly, who fly on loss making throw away tickets anyways. Very few people from border areas might find it more attractive to go from Maastrich or Basel under the unlikely assumption that others will not follow.
It is a small part of a giant package to reduce state deficit, and was needed mainly for political reasons to get the fraction of savings from the social system below half of the total. This helped again ( together with the good German soccer team ) to keep protests actions minimal - and one day of strike would be a bigger damage than this tiny tax. The total will help significantly to keep the Euro strong, which is the big impact, and everybody has to contribute.

Lufthansa alone has a turnover of 20Bio € per yer, which is 1% of the German BIP. So to have 1/80 of all the costs taken over by aviation industry is fair.


User currently offlineNZ107 From New Zealand, joined Jul 2005, 6335 posts, RR: 39
Reply 2, posted (3 years 9 months 2 weeks 6 days 15 hours ago) and read 2064 times:

People on business will always prefer direct flights and if they have business in Germany, they'd theoretically be flying out of there too. In some cases, it's a bit too much of a detour to have to cross the border and catch a flight; it's very time consuming and could work out to be as expensive than if you just paid the tax. I highly doubt it it would make much of an impact. But I still question its existence.


It's all about the destination AND the journey.
User currently offlinePanHAM From Germany, joined May 2005, 8739 posts, RR: 28
Reply 3, posted (3 years 9 months 2 weeks 6 days 13 hours ago) and read 1987 times:

Quoting Schmidt505 (Thread starter):
Is this new tax going to help or hinder the German Economy?

Yes, it will cost more than it will bring in.

Quoting Burkhard (Reply 1):
t doesn't make a big difference. A few people less will fly, who fly on loss making throw away tickets anyways

First of all, under the yield management progranms airlines use today, the only loss making seat is an empty seat. All other seats, even if sold at €54,00 are profit making. Next, the minority of the passengers in Germany are originating here. We have a very successful hub airline which has build up 2 very successful hiubs, plus DUS which is not doing bad either. AB is hubbing as well.

Now, tell a passenger flying from country X to country Y through a German hub to pay € 22,00, he will likely use another choice which plenty availaqble. These passengers are not only lost to German airlines but to the airports as well. Ask Fraport or Munich how much money a transit passenger spends and you will be surprised.

Next - cargo . Nobody knows at the moment if cargo is affected as well. If yes, thousands of tons will disappear by truck to LGG, LUX, AMS, BRU etc. .The effect on lost job especially in the low income field will be felt very quickly.

The government thinks it can raise € 1 Billion revenue by this tax, it will lose about € 5 Billion.

This tax is a stupid tax and stupid taxes must be trashed

.



I'm not fishing for compliments
User currently offlineslz396 From , joined Dec 1969, posts, RR:
Reply 4, posted (3 years 9 months 2 weeks 6 days 13 hours ago) and read 1937 times:

I think such a tax should not be impemented on transfer pax, as it will make it harder for German airlines to compete.

Let's face it: if you're looking for an economy ticket from let's say Porto to Prague (just to give an example) and the average ticket price hovers around 450 euro for a return ticket, than 22 euro additional taxes is a lot of money: it's a 5% price difference which will be hard to get rid off for Lufthansa or any other German airline and it could potentially turn away a couple of transfer pax. If it does, it means a lot of the extra income from those who do pay the tax is cancelled out against it.

The Netherlands had a similar departure tax until last year aimed at raising more money, yet after a year they found out they had lost more money (from connecting pax taking their business elsewhere as well as others evading to neighbouring countries for their flights), than they could ever made from it, so they scrapped the tax... something similar is likely to be the outcome in Germany too, IMHO.

An aviation tax only makes sense if it is implemented in the entire EU (+CH).

[Edited 2010-07-02 05:36:57]

User currently offlinePanHAM From Germany, joined May 2005, 8739 posts, RR: 28
Reply 5, posted (3 years 9 months 2 weeks 6 days 12 hours ago) and read 1872 times:

Well, we have 180 million pax pa at German airports, which means 90 million departing. The tax must bring, in the dreams (or the milk maid's calculation) of the Government 1 Billion €, hence its 11 € per pax, transit or origin.

Simple math. Discussed in how-do-we-screw-the-people-out-of-the-rest-of-their-monies meetings by politicians who do not know and certainly not understand the airline business and its mechanics. They don't even fly commercial. Their only goal is to reach a coalition compromise at the end of the day which their speakers sell to the stupid public, wrapping up this further tax increase as a "savings measure".

That's Orwell speak. How can a tax increase be a "saving" especially when it hurts an industry and deprives it from revenue and income, resulting in even less taxes.



I'm not fishing for compliments
User currently offlinepeanuts From Netherlands, joined Dec 2009, 1411 posts, RR: 4
Reply 6, posted (3 years 9 months 2 weeks 6 days 11 hours ago) and read 1814 times:

Quoting Schmidt505 (Thread starter):
Is this new tax going to help or hinder the German Economy?

Ask the Dutch!

If anything, some Dutch people who went running to DUS may come back and try their own airports again...

In general, if the Germans have done their homework they figured the market can bear the 11 Euros. The Dutch were way off with their higher number, as the market refused to go along with it and the Dutch government retreated on it.



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