AF-KLM urges green tax deferral citing COVID-19 impact

Air France-KLM chief executive Benjamin Smith has said that environmental taxes on aviation should be postponed due to the economic impact of the coronavirus. Speaking at the Airlines4Europe conference in Brussels last week, he said that further plans to tax air travel should be avoided in the current climate. France aims to add an “ecotax” on almost all flights starting in 2020, the amount per passenger depending on the distance flown and the class of service. The government thinks this could bring in around EUR180 million euros (USD200 million) that would be used to support what it considers less polluting modes of transport, like trains. The Netherlands is preparing a similar policy, with a EUR7 (USD8) levy on passenger travel and extra charges for cargo due to come into force in 2021. In November, nine countries asked the European Commission to tax carbon dioxide emissions from aircraft, and the Dutch scheme is essentially a fall-back option in case EU-wide measures are not introduced this year.