France has been prompted by the decision by François Bayrou’s government to more than double the “solidarity tax” on tickets, with increases expected from next month.

The French government argues that the increases are fair, citing environmental and tax reasons. But critics of the decision argue that there will be a blow to France‘s ability to compete globally.

The costs are expected to be passed on from airlines to passengers. However, Air France has estimated it will amount to €100 million, at a time when the airline is recovering from the pandemic losses. At the same time, Ryanair is threatening to cut flights to and from the country’s airports.

The burden

The measure is part of the 2025 budget, aimed at reducing France’s spiraling deficit. The legislation passed through parliament without a vote.

The tax for a flight of short-haul economy-class flight within France or Europe will rise from 2.63 euros to 7.40 euros for flights departing from France.

The charge for a medium-haul economy class flight will rise to €15 and for long-haul flights – over 5,500km – to €40. The tax for business and first-class tickets will also increase to 30 euros for short-haul flights, 80 euros for medium-haul flights, and 120 euros for long-haul flights. Fees for private jets will increase from 220 to 2,100 euros.

The tax increases will exclude those to Corsica and the overseas territories of France.

Chirac Tax

Revenue from new rates of the “solidarity tax on airline tickets, also called the Chirac tax after the former president introduced it in 2006 to fund international aid programs, is expected to more than double to nearly €1 billion a year.

The minister in charge, Amélie de Montsalen, said the measure is fiscally and environmentally fair. “The 20% of the population with the highest income is responsible for more than half of the money spent on air travel.”

Benjamin Smith, the general manager of Air France-KLM, told Le Parisien last month that the tax increase was “irresponsible” and described it as an “access tax in France”, where air travel is taxed more in Europe. He added that over the past 20 years, the airline has been losing 1-2% of the market annually to foreign airlines.

The chief executive of Ryanair, Michael O’Leary, has threatened to cut his airline’s flights to France if the tax is increased, saying “Europe will not become more efficient or more competitive by overtaxing airfares.”