Ryanair alleges refusal by Athens Airport to pass on cut on passenger taxes

Controversy around Greek government order for steep cut in passenger taxes
2024-07-31
/
/ New Delhi
Ryanair alleges refusal by Athens Airport to pass on cut on passenger taxes
Ryanair alleges refusal by Athens Airport to pass on cut on passenger taxes

Ryanair says that the Greek government has decided to slash the passenger tax by 75 pc from EUR 12 to EUR 3 per passenger with effect from November 2024

Ryanair has filed a plea with the Greek government challenging the alleged refusal by the Athens Airport to pass on the tax in passenger taxes announced by the government, to slash taxes from EUR 12 to EUR 3 per passenger with effect from November 2024.
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Ryanair, an Irish ultra low-cost carrier, has lodged a formal appeal with the Hellenic Civil Aviation Authority (HCAA) against Athens Airport alleging it is attempting to circumvent the Greek State’s decision to reduce aviation passenger taxes.

In a press statement, the airline says that the Greek government has decided to slash the passenger tax by 75 pc from EUR 12 to EUR 3 per passenger with effect from November 2024. This decision to reduce access costs would directly contribute to the expansion of off-peak connectivity and the growth of year-round tourism in Greece, says the airline, alleging that Athens Airport and its main shareholder, German airport operator Fraport, are trying to abuse their market dominance by refusing to pass on the reduced taxes to the passengers.

Jason McGuinness

Jason McGuinness

“Athens Airport and Fraport Greece’s shameless attempt to pocket the aviation tax cut by the Greek State from November 2024, is outrageous, and runs counter to government policy to support growth and tourism,” alleges Jason McGuinness, Chief Commercial Officer, Ryanair.

“The Greek State took the sensible decision to reduce access costs across all Greek airports from November 2024, positioning Greece to move away from chronic seasonality and position itself for year-round connectivity. Governments across Europe such as Hungary, Sweden, and Italy, are scrapping or reducing their aviation taxes as they realise they need to reduce costs given the constraints within European short-haul capacity,” he adds.

The airline alleges that Athens Airport and Fraport Greece, have no plans to pass on these lower access costs to passengers travelling to or from Greece. 

“Instead, they plan to hike airport charges to cancel out the progressive decision by the Greek State and keep the taxes for themselves, at the expense of Greek citizens and visitors,’’ alleges the airline. 

Ryanair claims it has extended the tourism season in, and brought much-needed off-peak capacity to Croatia, Cyprus, Italy, Malta, and Spain, supporting jobs, tourism and economic growth in cities and regions alike. 

“It is unjust for the German monopolies, Athens Airport and Fraport Greece, to be allowed to divert the benefit of Greek tax cuts away from Greek passengers. back to their German head offices. Ryanair calls on the Greek Government and the Greek Regulator (HCAA) to protect passengers and local economies by ensuring Athens Airport and Fraport Greece respect the decision of the Greek Government to reduce access costs and pass through the full tax cut to Greek citizens / visitors from November 2024,” McGuinness adds.

Ryanair says it calls on the Greek government and the HCAA to protect passengers, by ensuring Athens Airport and Fraport Greece respect the decision made by the Greek State to reduce the Airport Development Fee tax from November 2024. 

“This is a brazen attempt to ignore the intended economic benefits the government were trying to deliver for Greek citizens by increasing the competitiveness of Greece through a reduction in access costs,” alleges Ryanair.

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