French, Swiss sign deal in Davos

BASEL, SWITZERLAND – Basel airport will remain in full service, following an agreement between France and Switzerland. The airport, which is an important centre for airline easyJet, had been at the centre of a dispute between the two countries.

The new agreement calls for international operators to be taxed by the Swiss and other companies by France. The two governments, in a joint statement, noted the significance for jobs in the area: “In total around 6,000 people are employed by the airport, more than 4,500 of them by some 60 Swiss companies in the airport’s Swiss sector. The airport is the second-largest employer in the Haut-Rhin department in Alsace.”

France had argued that the airport should be taxed on the basis of physical territory, while Switzerland argued that the current agreement, in place for more than 60 years, should prevail. If French taxes applied, costs to travelers would increase significantly.

Details, Federal Department of Foreign Affairs; background, swissinfo