Austria to implement EUR40 price floor on airfares, introduce new tax for routes under 350km

    Austria‘s Minister for Climate Protection, Energy, Mobility, Innovation and Technology Leonore Gewessler reported the government plans to make adjustments to airfare and charges regulations with the aim of reducing the environmental impact of aviation (Puls 24, 08-Jun-2020). Details include:

    • Ms Gewessler said it will “no longer be possible to offer tickets whose price is lower than taxes and actual costs”, adding there will be a price floor of around EUR40 on average;
    • Providing airport charges incentives for airlines operating more fuel-efficient aircraft;
    • Introducing a new EUR30 passenger tax category for routes under 350km.