Germany's would-be coalition partners aim to abolish air transport tax

February 03, 2018 | 09:59
(0) user say
BERLIN: Negotiators for a new grand coalition between Chancellor Angela Merkel's conservatives and Germany's Social Democrats plan to progressively abolish the country's air transport tax, according to a working paper seen by Reuters on Friday (Feb 2).
germanys would be coalition partners aim to abolish air transport tax
The skyline of Frankfurt am Main, Germany's financial capital. (Photo: AFP/Amelie QUERFURTH)

The tax is levied on ticket prices and costs between 7 and 40 euros (US$8.74 to US$49.96) depending on the distance flown.

The government collects over 1 billion euros a year from the tax, with over half the total paid by German airlines, including Lufthansa , Germany's largest carrier.

"We want to gradually abolish the air transport tax in this legislative period," the paper said.

Lufthansa shares turned slightly positive after the report, making them one of only two gainers on a 1.3 per cent weaker DAX index at 11.48am GMT.

The BDL aviation association, which represents the interests of the airline industry, declined to comment on the coalition negotiations. It has previously called for the tax to be abolished.

Reuters/ AFP photo

What the stars mean:

★ Poor ★ ★ Promising ★★★ Good ★★★★ Very good ★★★★★ Exceptional