The boss of Air France-KLM spoke out on Friday against the French government’s plan to increase taxes on air transport, calling it « choc » for his group and “new blow for the entire sector”.
“If this taxation project were implemented, it would have a significant impact on the competitiveness of our companies, Air France, KLM and Transavia”warned the general director of the Franco-Dutch company, Benjamin Smith, in a statement sent to AFP.
The leader, who had not yet spoken since this possible measure was revealed at the beginning of October then made official Thursday evening during the presentation of the finance bill (PLF) for 2025, warned that “France is on the verge of becoming the country in the European Union that taxes air transport the most”.
“We warn of the imperative to preserve fair conditions of competition, by distributing the effort in a balanced manner across all companies”he added.
“Faced with competitors benefiting from a more advantageous tax and regulatory environment, French companies continue to lose ground. Distortions of competition have never been so strong in France. This is no longer acceptable”insisted Mr. Smith.
The latter, whose company is 28% controlled by the French state and was saved from bankruptcy during the health crisis in 2020 thanks to the intervention of public authorities, argued that Air France-KLM “irrigates entire sections of the French economy – tourism sector in the lead”.
“We are strongly committed to the decarbonization of our activities, with tens of billions of euros of investments in the renewal of our fleet and the integration of more sustainable aviation fuel, of which we are the largest buyer in the world”he stressed.
“We are determined to go even further and faster, but can only do so if we fight on equal terms against our competitors”warned Mr. Smith.
