Austria cuts air travel tax

GENEVA Austria will halve its air travel tax 1 January 2018.

International Air Transport Association welcomed the move saying it was “good news for Austrian air travellers  and for everyone thinking of visiting the country”.

The Austrian Ministers Council confirmed that the decision was taken to increase the attractiveness of Austria as a business and tourism destination, to secure the future of Vienna airport as an international aviation hub and to create jobs and increase economic development.

“In cutting its travel tax, the Austrian government has taken an important step in the right direction,” said IATA’s director general and CEO, Alexandre de Juniac.

“Other countries should take note, particularly Germany and the UK, which continue to heavily tax air passengers.”

The new structure of the Austrian tax will be €3.50 for short haul, €7.50 for medium haul, and €17.50 for long haul.

IATA said the cuts would create economic benefits, but these would be maximised if the tax was reduced to zero. Analysis by IATA in 2015 revealed that completely removing the tax would increase international travel by 2.7% and create 1,700 jobs in the country.

“While the tax cut is good news, it is not the end of the story. There is more that the government can do to strengthen air transport in Austria. Ultimately, the tax should be scrapped completely. And Vienna airport needs a third runway. With expansion seemingly blocked in Munich and Zurich, the region is suffering from a lack of airport capacity.”

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