Hanke signals cut to Austria’s aviation levy

Austria’s transport minister, Peter Hanke, has signalled a reduction in the country’s aviation levy, saying his ministry has earmarked 60 million euros to make a cut possible. He spoke in Linz on Wednesday, ORF reported.

The government is discussing a broader package and aims to make a decision in the coming weeks. The transport, economy, tourism and finance ministries are involved, Hanke said. He did not support abolishing the levy entirely, saying measures to influence behaviour should remain in place.

Hanke cited pressure on the aviation industry from higher kerosene prices and longer flight routes, saying Austria needed to remain competitive. The levy currently stands at 12 euros per passenger, rising to 30 euros for flights of up to 350 kilometres. Airlines pay the charge.

Upper Austria governor Thomas Stelzer renewed his call for the levy to be scrapped, arguing that it puts Austrian airports, particularly Linz Airport, at a disadvantage. He said airlines and services were moving elsewhere because other countries had no levy or charged less. Stelzer said a reduction would still help, but that action was urgent because airports were already losing connections.

Chancellor Christian Stocker had also recently signalled support for a reduction. Airlines and other industry representatives have been pressing the government for months to cut or abolish the charge.