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Image header Agence Europe
Europe Daily Bulletin No. 12450
Contents Publication in full By article 18 / 31
EU RESPONSE TO COVID-19 / Transport

T&E proposes that airlines should only receive financial support if they pay more taxes and are greener

The NGO platform European Federation for Transport and Environment (T&E) proposed, on Wednesday 18 March, that airlines struggling with the COVID-19 epidemic (see EUROPE 12448/9) should only be eligible for financial support if they commit to paying taxes and adopting green technologies once the crisis is over.

"Airlines calling for public support in bad times should accept they need to start paying taxes in good times", said Andrew Murphy, head of aviation at T&E, in a statement.

The organisation, which brings together some 50 NGOs, points out that carriers are exempt from fuel tax and VAT on international flights within Europe and deplores the fact that they are not turning to "cleaner fuels, such as synthetic kerosene and waste-based fuels".

The Airlines for Europe (A4E) organisation replies that the 16 airlines it represents are planning to invest €169 billion in greener aviation technology over the next ten years.

"Imposing taxes without reinvesting their revenues in de-carbonisation projects does not help to lower CO2 emissions from flying, but rather only hampers connectivity for passengers living in peripheral regions ", a representative from the organisation told EUROPE in reaction toT&E's statement.

On Tuesday 17 March, the European Commission submitted for consultation to Member States a draft proposal for a State aid Temporary Framework to keep businesses running (see EUROPE 12448/4) despite the crisis.

The Vice-President of the Commission, Margrethe Vestager, then indicated, by way of example, that compensation could be granted to airlines for damage suffered as a result of the COVID-19 epidemic, regardless of whether or not they had received rescue aid over the last ten years. (Original version in French by Agathe Cherki)

Contents

EU RESPONSE TO COVID-19
SECURITY - DEFENCE
EXTERNAL ACTION
SECTORAL POLICIES
COURT OF JUSTICE OF THE EU
NEWS BRIEFS