{"id":7552,"date":"2025-07-07T14:31:13","date_gmt":"2025-07-07T13:31:13","guid":{"rendered":"https:\/\/www.greenairnews.com\/?p=7552"},"modified":"2025-08-27T18:09:31","modified_gmt":"2025-08-27T17:09:31","slug":"eight-nations-unite-to-propose-taxing-premium-class-fliers-sparking-airline-industry-anger","status":"publish","type":"post","link":"https:\/\/www.greenairnews.com\/?p=7552","title":{"rendered":"Eight nations unite to propose taxing premium class fliers, sparking airline industry anger"},"content":{"rendered":"\n

An eight-nation coalition has been formed with support from the EU and the Global Solidarity Levies Task Force (GSLTF) to propose a levy on premium air travel, as global scrutiny intensifies on climate damage caused by aircraft emissions. France, Kenya, Barbados, Spain, Somalia, Benin, Sierra Leone and Antigua & Barbuda announced their collaboration during the UN\u2019s fourth International Conference on Financing for Development (FFD4), which has just concluded in Seville. Their initiative proposes levies on First and Business Class air tickets and private jet operations to help increase aviation\u2019s contribution to mitigating the impacts of climate change, particularly in developing nations, and cites an estimation in a study by Netherlands-based environmental consultancy CE Delft, commissioned by the GSLTF, that levies could generate <\/a>\u20ac78 billion ($90bn) per year.<\/strong> IATA has heavily criticised the move.<\/strong><\/p>\n\n\n\n

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\u201cNew levies on premium flyers can raise vital funds for climate and development,\u201d said Laurence Tubiana, co-lead of the Global Solidarity Levies Task Force<\/a> Secretariat, which was established in November 2023 during the COP28 summit in Dubai, and is co-chaired by France, Kenya and Barbados. Tubiana, who is also President and CEO of the philanthropic European Climate Foundation, said the latest initiative was \u201cproof that we can make progress.\u201d\u00a0<\/p>\n\n\n\n

But the plan has enraged IATA<\/a>, which says the proposal \u201creveals severe deficiencies\u201d in that it lacks meaningful detail on the economic impacts of the levy, that it provides no certainty that the funding will be used for climate mitigation projects, and that it fails to take into account a climate financing mechanism for aviation already exists in the form of the CORSIA international carbon offsetting scheme.<\/p>\n\n\n\n

\u201cThe airline industry is an economic catalyst, not a cash cow,\u201d said IATA\u2019s Director General, Willie Walsh. \u201cYet governments casually suggest a tax on flyers that is three times the airline industry\u2019s annual profit without considering the real-world side effects for an industry that is a lifeline for remote communities, invigorates tourism markets and links local products to global markets.<\/p>\n\n\n\n

\u201cWhile the modalities for the GSLTF proposal are not specified, history shows us that these taxes simply go to the general exchequer, with little, if any, of the revenues generated going to climate change adaption.\u201d<\/p>\n\n\n\n

ICAO, too, has strongly opposed this and other such initiatives (see article<\/em><\/a>), which it claims will undermine CORSIA as the agreed single market-based measure to help mitigate climate impacts of international aviation.<\/p>\n\n\n\n

In April, ICAO Secretary General Juan Carlos Salazar urged the organisation\u2019s 193 member states to \u201cexpress a deep concern\u201d over independent actions by countries or organisations to fund general climate repair programmes through measures such as taxes on international aviation.<\/p>\n\n\n\n

The multi-national coalition<\/a> formed in Seville wants to highlight premium flyer taxation ahead of the UN\u2019s COP30 Climate Summit in Belem, Brazil, in November, promoting the initiative as an aid to \u00a0developing nations in addressing major challenges including climate change impacts.<\/p>\n\n\n\n

It calls on more nations to introduce levies on premium flying, including taxing the use of private jets \u201cbased on best practices\u201d, and is urging those countries already taxing premium travel to ensure \u201cupward harmonisation\u201d and work on principles for using the proceeds.<\/p>\n\n\n\n

\u201cIn parallel,\u201d said the coalition, \u201cthese countries may explore options for a generalised taxation at international levels, building on current discussions at ICAO on the decarbonisation of the aviation sector.\u201d<\/p>\n\n\n\n

\u201cThe coalition commits to work towards COP30 on a better contribution of the aviation sector to fair transitions and resilience, with a special focus on premium flyers, in view of investing all or parts of the proceeds into resilient investments and fair transitions,\u201d explained Thani Mohamed-Soilihi, Minister Delegate for Francophonie and International Partnerships of France.<\/p>\n\n\n\n

\u201cIn our proposal, member states will commit to introduce a ticket levy on premium flyers if they don\u2019t have one, make their ticket levy more progressive for upward harmonisation, and for all countries to introduce a significant tax on private jets. Together, we have to make a difference.\u201d<\/p>\n\n\n\n

Speaking at FFD4, French President Emmanuel Macron said many countries were struggling with debt, adding: \u201cWe need those that benefited from globalisation to contribute more to financing. We have to mobilise global solidarity levies. We have made progress on maritime, and now on aviation there is a huge step forward. I urge all countries to join this international framework because it is absolutely key.\u201d<\/p>\n\n\n\n

Spain\u2019s Prime Minister, Pedro S\u00e1nchez, declared \u201cmultilateralism is alive\u201d as he pledged his country\u2019s support for \u201ca better contribution of premium flyers,\u201d while Kenyan President William Ruto added: \u201cWe cannot keep talking about change without implementing it,\u201d and said political will was needed to progress such plans.<\/p>\n\n\n\n

Wopke Hoekstra, the European Commission\u2019s Commissioner for Climate, Net Zero and Clean Growth, also welcomed the opportunity to support the coalition \u201cto work towards COP30 on a better contribution of the aviation sector to fair transitions and resilience, with a special focus on premium flyers.\u201d<\/p>\n\n\n\n

The coalition\u2019s pursuit of premium travel levies was welcomed by climate advocacy group Opportunity Green<\/a>.<\/p>\n\n\n\n

\u201cThis initiative is a hopeful step forward in improving aviation\u2019s poor record on climate, and we urge other countries to follow their lead,\u201d said the group\u2019s founder and CEO, Aoife O\u2019Leary.<\/p>\n\n\n\n

\u201cAviation has enjoyed unjustified exemptions from basic taxation, like fuel duties and VAT, and remains one of the sectors with the fastest-growing greenhouse gas emissions. The proposal to tax high-emitting luxury air travel is both equitable and reasonable.\u201d<\/p>\n\n\n\n

But IATA responded that the airline industry was committed to reducing or compensating for its emissions and argued premium flyer taxes would destroy airline economics, reduce connectivity and impact the very markets which the tax advocates claimed would benefit.<\/p>\n\n\n\n

\u201cThe bottom line is that, if followed, the GSLTFs recommendations will increase the cost of air travel for all travellers and do more harm than good,\u201d said Walsh.<\/p>\n\n\n\n

\u201cExtracting tens of billions of dollars from aviation will cripple its ability to invest in achieving net zero by 2050, change route dynamics to the extent that connectivity will suffer and short-change countries on the critical economic support that air transportation provides.<\/p>\n\n\n\n

\u201cThe industry is doing everything possible to achieve net zero carbon emissions with sustainable aviation fuels, more efficient operations and better technology. The last thing these efforts need is a $90 billion gut punch of a tax.\u201d<\/p>\n\n\n\n

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Photo: Malaysia Airlines<\/strong><\/p>\n\n\n\n

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