Norway’s new aviation tax criticised

New tax is “ill-advised, damaging and counterproductive”
The Norwegian government’s new tax on air passengers has come into effect, a move bitterly criticised by aviation groups and airlines. It imposes NOK 80 (€8.59) on each departing passenger, for both domestic and international flights from Norway.
Airport operator association ACI Europe says it views the new tax as a worrying development. It is “short-sighted, as it ignores the economic and wider strategic benefits of air transport – the loss of which will significantly outweigh any short-term gains for the Treasury,” it commented.
“Air connectivity and GDP growth are closely interrelated. They actually reinforce each other, with every 10% increase in air connectivity yielding an additional 0.5% increase in GDP per capita.”
ACI continued: “Other countries such as Ireland, Belgium and the Netherlands have all toyed with this kind of tax before and eventually repealed it. They did so acknowledging that taxing air transport directly hurts economic performance, and ultimately the state’s ability to collect wider tax revenues.”
Earlier this year, ACI Europe participated in a public consultation launched by the Norwegian government on this issue, outlining its concerns, with hard data to back up its claims.
A recent study found that aviation supports 4% of Norway’s economy, something that is now at risk with the new tax. Airlines like Ryanair and airports such as Oslo Rygge have also criticized the move.
TTG Nordic

x

Check Also

Emirates, Ryanair, Flybe, Austrian, Virgin, British Airways, easyjet, American Airlines, airlines, load factor, PLF, fullest, planes, aircraft, environment, business, profit

Airlines with best and worst load factor

Flying planes full makes airlines far more profitable, and it’s better for the environment.

Norwegian, loss, profit, revenue, 2017, year, quarter, costs, oil, fuel, Kjos, result

Norwegian posts €30.7mn full-year loss

The negative result was influenced by global expansion, fleet renewal and other costs.

Norwegian, low-cost, Kjos, Boeing 787, Dreamliner, Airbus, A321neo LR, Singapore, Asia, Argentina, South America, plans, strategy, UK, London, speech, Shard, transatlantic, long-haul, USA, Detroit, Philadelphia

Norwegian plots global expansion

But it is putting the UK first. It makes the first low-cost long-haul flight to South America today.

Ryanair, Brexit, O'Leary, shareholders, sell, UK, EU, deal, shares, citizen

Ryanair may force UK shareholders to sell

CEO Michael O’Leary believes such a move may arise to avoid Ryanair being grounded after Brexit.

Ryanair, CPH, Copenhagen, Kaunas, Lithuania, base, open, reopen, aircraft, flights, low-cost, unions, Danish, Eddie Wilson

Ryanair to return to Copenhagen?

A representative of the low-cost carrier meets Danish unions ahead of setting up a possible base.

Norwegian, SEPLA, union, Spain, Ialy, bases, pilots, CBA, agreement, deal, Icelandair

Norwegian, Icelandair make deals with pilots

Separate agreements are signed with a union in Iceland – and unions in Spain and Italy.