IATA disappointed that Africa-aid tax proposal remains
Geneva-based International Air Transport Association (IATA) expressed “extreme disappointment” that the Economic and Financial Affairs (ECOFIN) meeting held in Luxemburg Tuesday did not result in the abandonment of proposals for a tax on air transport to support third world development.
French President Jacques Chirac proposed a voluntary airline tax on flight tickets sold in the European Union to help fund extra aid for Africa at the World Economic Forum in January.
“Development is a serious issue that needs a serious solution. But focusing on airline travelers, whether with a tax or a voluntary contribution, is absolutely not the way to do it,” said Giovanni Bisignani, director general and chief executive officer of IATA. “This tax proposal is yet another example of national European leaders sacrificing competitiveness for political agendas.”
According to IATA “policy-misregulation and micromanagement” costs the European air transport industry euros 5.9 billion ($7.6 billion) each year.