Writer

Charlotte Bailey

As European governments grapple with budgetary deficits and pressure to achieve net-zero carbon targets, taxation is being weaponized to make business aviation pay, according to industry organizations. Over the past 12 months, industry leaders are increasingly concerned about the way the sector has been singled out for an “all-stick-no-carrot” approach to market manipulation at a time when Europe’s anemic economies have arguably never been in greater need of the wealth generation that business aircraft can support.
France’s so-called “solidarity tax,” which has been imposed on private charter services since March 1, is the most glaring case of the aggressive fiscal pressure that some see as posing an existential threat to business aviation in that country. Pending increases to the UK’s air passenger duties are another example, and while both sets of taxes also apply to airline passengers, there is an intentionally disproportionate impact on business aviation travelers.
The impact of the <a href="https://www.ainonline.com/aviation-news/business-aviation/2025-02-11/charter-flights-face-punitive-passenger-taxes-france">new French tax</a> varies according to a flight’s destination category and the aircraft booked. This can result in charges ranging from €210 to €2,100 per passenger and represents a jump of up to 300% from previous taxes.
According to Kyle Martin, v-p of European affairs with the General Aviation Manufacturers Association (GAMA), France’s levy is “the biggest and most frustrating tax development” in Europe and poses a serious threat to commercial charter operators. In his view, it is no more than a “punitive revenue-driving measure for the French government.”
<h2>Business Aviation an Easy Target</h2>
The tax was conceived last year as part of plans to plug a serious budget deficit at a time of extreme uncertainty over the stability of France’s government. According to Martin, business aviation emerged as “an easy target” despite France being a long-standing aviation industry leader.
“It’s somewhat surprising the French government chooses to attack aviation this way with this punitive tax measure,” he told AIN.
Notably, politicians behind the solidarity tax have not sought to justify it as part of a decarbonization effort, even though sustainability has previously been used as the main driver of fiscal moves against the industry. The implication would appear to be that the coalition that instigated the tax as part of a highly contentious 2025 budget settlement in France’s fragmented parliament viewed it as a wealth dispersal measure.
“We should move away from the ban mentality and focus on policies that support innovation, decarbonization, and competitiveness,” said Holger Krahmer, secretary general of the European Business Aviation Association (EBAA).
According to Olivier Perdriel, CEO of Paris-based aircraft management and charter group Skyfirst, the solidarity tax could have disastrous economic and social repercussions “that are likely to cost France more than it will earn.” He predicted it could force some aircraft operators out of business and also compromise the viability of many smaller regional airports across the country that play a vital role in transport services, including medical evacuation flights.
Across the channel, the UK government is set to turn up the fiscal dial on private aviation with <a href="https://www.ainonline.com/aviation-news/business-aviation/2024-10-31/uk-plans-50-tax-hike-business-jet-charter-passengers">new passenger duty rates</a> that took effect in April and include a new top rate of £673 ($895) per passenger. This is set to increase even more to more than £1,000 from April 2026 for larger jets, with the UK government maintaining that “this increase to the higher rate will ensure that users of private jets continue to make a fair contribution to the public finances.”
None of the anticipated £520 million expected income in the first financial year alone is to be allocated to environmental sustainability measures.
While the rationale behind elevated taxation on private aviation seems to be consistent, it’s perhaps no wonder that EBAA describes the European fiscal regime as “highly fragmented, with many different taxes being applied differently in various European member states.” Italy first imposed a tax on private and business aviation (the “Salva Italia” or “Aerotaxi tax”) in 2012, while Belgium’s “embarkation tax” (just €2 to €10 per passenger) came into effect in 2022.
<h2>Au Revoir to Jobs and Investment</h2>
An Oxford Economics study commissioned by GAMA and EBAA and published in January warned that “restrictive government policies” could jeopardize up to €120 billion ($136 billion) in foreign investments and 104,000 jobs by 2030.
“Often perceived as a luxury, business aviation plays a crucial role in economic deployment,” said Carlos Brana, senior executive v-p for civil aircraft at Dassault Aviation. “We’ve seen firsthand how it fosters growth in the regions it connects, from creating jobs in remote areas to attracting investment and reducing travel time.”
Nonetheless, there is a sliver of a silver lining alongside Europe’s darker fiscal clouds, with Sweden—described by IATA as a nation to have “notably lagged its neighbours” in post-pandemic aviation recovery—set to abolish its air passenger duty. “Sweden, and to an extent Norway and Denmark, they’re all trying to incentivize, fund, develop, and encourage future propulsion technologies, particularly for their regional flights. So they’re trying to do that by incentivising regional operators and not taxing them,” GAMA's Martin explained.
Dassault, with support from EBAA, has mounted an unsuccessful legal challenge against the European Commission’s so-called European Union Taxonomy legislation, which effectively excludes business aviation from accessing finance associated with sustainability measures, such as fleet replacement and investment in sustainable aviation fuel. Nonetheless, Martin stressed that the business aviation industry groups must continue to press for fairer treatment from governments.

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