""The state is giving up revenue, but passengers will not see any of the tax reduction," Wissel predicted in an interview with DW. Although airlines would save around 15 ($17.5) per ticket potentially up to 50 in certain fare classes dynamic pricing systems mean those savings are unlikely to show up on customers' bills, he said."
"Wissel argues a lack of aircraft, not fees, is driving airlines' decisions to scale back services in Germany. Low-cost carriers such as EasyJet and Ryanair have trimmed their networks because "they simply do not have the planes they need," he said, adding that complaints about Germany's high airport charges distract from the deeper structural issue."
"Joachim Lang, CEO of the German Aviation Association (BDL), called it "an important signal" that ends "the years-long upward spiral in taxes and charges." State-imposed location costs would fall by around 10%, he said, while stressing that more relief will be needed if Germany is to benefit from Europe's post-pandemic air travel boom."
Germany will roll back the aviation tax to its pre-May 2024 level starting July 1, 2026. The reduction will cut between just under €3 and nearly €13 from each ticket depending on route distance. Airlines could save roughly €15 (US$17.50) per ticket and potentially up to €50 in some fare classes, but dynamic pricing systems make customer bill reductions unlikely. A lack of available aircraft, rather than fees, is driving airlines to scale back services and causing low-cost carriers to trim networks. State-imposed location costs would fall about 10%, yet further relief is considered necessary for competitiveness.
Read at www.dw.com
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