Geneva, Switzerland (GenevaLunch) – “In 2009 we’ve not seen big tax increases coming through,” says Jeff Poole, director of airport and industry charges and taxation at IATA (International Air Transport Association) in Geneva. Poole says the big worry now is the Copenhagen climate change conference, with the likelihood that with attention focused on the environment, governments might see an opportunity to raise taxes.
Airports in particular have been good at holding down costs in 2009, a year when the airline industry organization has had on a cost-cutting campaign, with Iata asking airlines, airports and governments to keep charges at current levels or cut them. The industry had its highest-ever “proportion of real cost reductions, 86 percent, $3.02 billion” according to Poole.
Overall, Iata’s cost campaign “achieved over $3.5 billion savings”, with $1.26b in airport savings and $1.79b in lower taxes.
Singapore and Denmark cut their landing fees by 25 percent and in Toronto, Canada, Pearson airport began a 10 percent discount on landing/terminal fees. The Netherlands canceled its air passenger tax.
On the other hand, Dubai, Heathrow in London, South Africa and India are among the worst offenders for increasing their rates.