International Air Transport Association (IATA), has expressed dismay over the recommendation of the Global Solidarity Levies Task Force (GSLTF), to impose levies on air transport as a means of boosting domestic revenue for developing countries and supporting climate change mitigation, pandemics and other development challenges.
IATA, which stated that the airline industry was an economic catalyst, not a cash cow, also stressed that airlines were not evading doing their part to mitigate the impacts of climate change.
IATA’s Director General, Willie Walsh, insisted that the airline industry was doing everything possible to achieve net zero carbon emissions with Sustainable Aviation Fuels (SAF), more efficient operations and better technology.
He said: ‘The airline industry is an economic catalyst, not a cash cow. Yet governments casually suggest a tax on flyers that is three times the airline industry’s annual profit without considering the real-world side effects for an industry that is a lifeline for remote communities, invigorates tourism markets and links local products to global markets. Moreover, while the modalities for the GSLTF proposal are not specified, history shows us that these taxes simply go to the general exchequer, with little, if any, of the revenues generated going to climate change adaptation.
‘The GSLTF says that their solidarity levies won’t increase the cost of living for ordinary citizens or impact things like household bills.
This is untrue. The bottom line is that, if followed, the GSLTF’s recommendations will increase the cost of air travel for all travelers and do more harm than good. Extracting tens of billions from aviation will cripple its ability to invest in achieving net zero by 2050, change route dynamics to the extent that connectivity will suffer, and short-change countries on the critical economic support that air transportation provides.
‘To be clear, airlines are not evading doing their part to mitigate the impacts of climate change. The industry is doing everything possible to achieve net zero carbon emissions with SAF more efficient operations, and better technology. The last thing these efforts need is a USD90 billion gut punch of a tax. With respect to air transportation, the aims of the GSLTF could best be realized by supporting investments in SAF production so airlines can deliver prosperity by connecting people and businesses to global opportunities’.
