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Airlines and government

Wed Jul 11, 2018 4:52 pm

This clip started me thinking yet again about the extraordinary positions aviation is in: Movie time.

Why is that? Many of the traditional reasons seize to exist, within the EU anyway, or NAFTA or even within China. Many European flights go to European destinations. So all this international nonsense do not count for those flights, flights will not stop in a non EU country because of tax and VAT, nobody would stand for that in a flight from Schiphol to Barcelona. Or even a flight from Schiphol to New York. And even if taken on more fuel was an option, it cost fuel (read: money) to transport fuel.

So why hasn't this been brought under the same regime as train travel or car travel, does aviation has that great a lobby? And if the EU would start such a scheme would others follow? China is going to introduce a carbon trade system and some countries in South America are thinking the same.
Many happy landings, greetings from The Netherlands!
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Re: Airlines and government

Wed Jul 11, 2018 6:00 pm

Why the heak always taxes? I pay already to many taxes and also think the EU as institute should not be allowed to collected taxes. Think about alternative fuels or propulsion systems.
No aviation has a very limited lobby (being a lobbyist) it is international treaties that prevent VAT. On domestic flight it can be charged (e.g. in Germany and still 25 millions fly).
Let be clear global aviation will continue to increase and increase at high rates better regulate the technology but oh wait we as tax payers own about 30% of airbus
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Re: Airlines and government

Wed Jul 11, 2018 6:37 pm

It would be more complicated than it seems on surface. One could introduce VAT on all airline tickets, but that would mean that non-EU airlines would in better position than EU ones. For example some flying from Paris to Dubai, would either fly Lufthansa and pay VAT on the whole ticket or will fly Turkish Airlines and pay at most VAT on ticket to Istanbul and they would be able to price EU leg very low and they put higher charge on leg which is outside EU. Other option would be to have VAT on intra EU flights only, but that would put airlines based in Switzerland again at big advantage. Similar issue would be with fuel taxes, again it would put EU carriers (especially internal ones) at some disadvantage.

There are good reasons why investing in high speed rail in Europe is terrible idea, but not related to aviation at all.
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Re: Airlines and government

Wed Jul 11, 2018 7:31 pm

Even with fuel tax, carbon tax and VAT, a 65EUR flight ticket would still most likely cost less than 130EUR at the end. And then even if you apply subsidy, it's difficult for such a rather long trip as shown in the video from 230 to 130 EUR even with the help of financial source from fuel tax and VAT on tickets.
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Re: Airlines and government

Wed Jul 11, 2018 8:16 pm

Please try to keep the discussion about aviation and not politics. Political discussion belongs in the Non Aviation Forum.

✈️ atcsundevil

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