APEX (Airlines Passenger Experience Association) strongly encouraged governments worldwide to issue immediate tax relief in an even-handed manner for the airline industry in the wake of COVID-19 (Novel Coronavirus). Representing nearly every major airline in the world, APEX believes that governments around the globe have a responsibility to reduce taxation upon airlines during this unprecedented disruption due to the COVID-19 public health emergency.
Aviation remains one of the most heavily taxed industries worldwide with an estimated US$136 billion in taxes being paid via airlines this year ranging from 5% to over 50% of total passenger ticket cost. As airlines are a leading global economic driver, APEX has put forward three key recommendations:
- Reduce all possible global tax burdens on airlines during this stressful time,
- Suspend “hidden taxes” such as forced slot and gate utilization, and
- Remove any new aviation taxes / penalties from consideration.
“Airlines are critical to our world’s economy and connecting the lives of billions,” said APEX CEO Dr. Joe Leader. “APEX’s recommendations for governments reducing taxation, penalties, and slot/gate bureaucracy in the midst of a crisis will go a long way toward ensuring economic recovery. Now more than ever, we need to enable airline resources and funds to go into both the health of our industry and our customers worldwide.”
APEX’s position on the slot rule suspension aligns with IATA’s recent request to suspend global slot rules due to COVID-19. Following the initial steps taken by the European Union this week, this would allow airlines the opportunity to better manage the total number of flights at the over 200 slot-coordinated airports worldwide during these extraordinary times. Given the severity of the crisis, APEX expects that all slot and gate allowance measures will extend fully through the summer season effective immediately.
