Air transport in France significantly influences the economy, supporting nearly 568,000 jobs and contributing €52 billion, or 1.8% of GDP. Recent legislative changes to the Air Ticket Solidarity Tax could lead to 11,500 job losses by 2025 and a 2% drop in air traffic, raising concerns about the sector’s competitiveness. The aviation industry is vital for tourism and exports, generating €23 billion in international tourist revenue and over €12 billion in tax contributions.
The Impact of Air Transport on France’s Economy
The air transport industry in France plays a pivotal role in the economy, supporting a staggering 567,946 full-time equivalent jobs, both directly and indirectly. According to a recent study by Deloitte, commissioned by Fnam, this sector generates an impressive 52 billion euros in added value, contributing approximately 1.8% to the nation’s GDP. However, recent legislative changes regarding the Air Ticket Solidarity Tax (TSBA) have raised concerns, with predictions of potential job losses numbering 11,500 by 2025 as a direct result.
Legislative Changes and Their Consequences
On November 8, the National Assembly approved an amendment (i-3630) that proposes a significant increase in the TSBA. This decision has prompted Fnam to voice concerns about the negative implications for the French air transport sector and the country’s overall appeal to travelers. Lawmakers acknowledged the risks associated with this tax increase, particularly its potential impact on French air transport and regional accessibility.
The approved amendments aim to restrict the TSBA hike to just one year and exempt specific routes crucial for territorial continuity, including those to overseas territories and Corsica. Fnam’s analysis suggests that the new TSBA structure could result in an average reduction of 2% in air traffic across France by 2025, with a more pronounced drop at certain airports. This conservative estimate indicates that the tax could lead to a loss of over 500 million euros in state tax revenues and the aforementioned job losses.
Fnam emphasizes that the legislative process is ongoing, with the Senate yet to review the proposal, and it is unlikely to reach a conclusion before the year’s end.
Fnam also notes that if this tax is implemented, France would join Germany as the country with the highest air transport taxes in the European Union, potentially diminishing the competitiveness of French airlines. The organization draws attention to the situation in Germany, where similar tax measures have led to a noticeable decline in air traffic and a slower recovery in the post-pandemic landscape.
The aviation sector not only supports employment but also significantly boosts tourism and exports, contributing 37% of international tourist revenues in France, totaling around 23 billion euros from air travelers. Furthermore, the sector’s tax contributions exceed 12 billion euros, a figure comparable to the budget of the Ministry of Ecological Transition, Energy, Climate, and Risk Prevention.