France to tax flights from its airports, airline shares fall

Re:France to tax flights from its airports, airline shares fall by rsj_hn on Tuesday July 09, 2019 @05:17PM (#20396712)

Yes, the huge taxes are generally for international flights, and I think part of the reason is that, as you say, there aren't a lot of options for those flights so they have a captive market and are thus better able to bear those taxes. If you start with punitive taxes on domestic flights in the EU, it will disproportionately hit the airline industry there.

As with many things, the game with taxes is how to make the incidence of the tax fall more on the consumer and less on the producer. If you can accomplish that, then the tax is more likely to get through because unfortunately we don't have consumer lobbyists anywhere as strong as the business lobbyists.

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Re:France to tax flights from its airports, airline shares fall by snappieT on Wednesday July 10, 2019 @11:06AM (#20402634)

This doesn't explain why Norwegian are above to fly transatlantic for as low as $104 one-way (PVD-DUB on Feb 5th). I know that Providence airport likely charges lower fees, but it demonstrates how little "tax" is being paid on international flights.

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Re:France to tax flights from its airports, airline shares fall by JAlexoid on Friday July 12, 2019 @02:31PM (#20423127)

Norwegian has been hemorrhaging money recently, because they can't compete with traditional airlines.

I used to be a great proponent of Norwegian... but now... They cost as much, with less flexibility.

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Re:France to tax flights from its airports, airline shares fall by snappieT on Monday July 22, 2019 @04:21PM (#20501945)

My example literally demonstrates just how cheap they can be???

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Re:France to tax flights from its airports, airline shares fall by briandear on Wednesday July 10, 2019 @01:29AM (#20399358)

Taxes always fall on the consumer. Businesses don’t pay tax.

https://miltonfriedman.hoover.org/friedman_images/Collection...

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Re:France to tax flights from its airports, airline shares fall by mhuffman on Wednesday July 10, 2019 @03:19AM (#20399829)

That depends on the product being taxed. I learned this in econ101 that the price elasticity of demand determines who bears the bulk of a tax. I don’t have references in my old textbooks handy, but here is exactly the same concept as I learned it[1]

Basically, if demand for a product is inelastic (eg. cigarettes, insulin) that will pretty much be 100% passed on to customers by the business. You can see the supplied link for examples where the seller has no choice but to eat the tax (or most of it) or people will just stop purchasing.

[1] https://www.khanacademy.org/economics-finance-domain/microec...

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