9 JULY 2012

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Article from BTNews 9 JULY 2012

Spanish airport tax

Will the tax increases affect the bottom line?

In a well received speech to the Aviation Club in London last week Vueling CEO, Alex Cruz, said that Spain has overtaken the United Kingdom as Europe’s most taxed economy when it comes to the airline business.  New, much higher, taxes came into effect on 1 July, regardless of when you purchased your ticket, and further increases are expected for 1 January 2013.

“Someone, somewhere, in Government, must be able to use a spreadsheet and realise that the higher the tax the greater the decision not to fly to Spain”, he said. 

Asked by this publication for his views on low-cost long haul he said it had not been a success and reminded the audience that there was a great deal of growth left in Europe.  “US: 310m population, 632m domestic passengers in 2011.  Europe: about 500m population, and 500m passengers”. www.aviationclub.org.uk

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