French pilots' union flags strike to protest tax hike on airline tickets
PARIS, Nov 10 (Reuters) -French pilots' union SNPL is calling for strike action on Thursday to protest against a government proposal to triple the levy on flight tickets as part of wider plans to plug a hole in France's state budget, a spokesperson said on Sunday.
WHY IT IS IMPORTANT
The strike notice, which concerns Air France AIRF.PA as well as other carriers with pilots on French labour contracts, comes as the government rushes to push its draft budget for next year over the line, despite lacking a majority in parliament.
KEY QUOTE
"This additional tax will ultimately lead to tens of thousands of job losses in France," the union said in a statement, adding: "This social disaster will go hand in hand with the weakening of French operators or those operating regularly in France compared to their European and international competitors."
CONTEXT
The government's proposed increase in the aviation levy on flights to or from France combines an urgent need for more tax income with environmental aims but has sparked anger in the aviation sector.
Raising the levy, particularly for long-haul flights, is supposed to generate additional revenue of 1 billion euros ($1.07 billion) next year.
The measure was included in the current version of the draft budget through an amendment.
However, given that the bill is the subject of political haggling between a hung National Assembly, the conservative-controlled Senate and Prime Minister Michel Barnier's government, it is unclear if the levy will be part of the final budget text.
It remains to be seen how many pilots could walk out on Thursday or how flight schedules might be affected.
($1 = 0.9330 euros)
Reporting by Tassilo Hummel; Editing by Susan Fenton
Related Assets
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
