IACA airlines call for dismissal of tax on air fare to raise development funds

Airline Industry Information, May 20, 2005

AIRLINE INDUSTRY INFORMATION-(C)1997-2005 M2 COMMUNICATIONS LTD

The members of the International Air Carrier Association (IACA) do not support the proposal of tax on airline tickets to raise funds for poor nations.

The 35 airlines who are members of IACA have called for European Union finance ministers to dismiss the proposal, saying in a statement that it is unacceptable to use air travellers as a source of funding in this manner. The ministers had earlier agreed on such a tax, saying that it would be voluntary - only five or six out of 25 EU members said that they were ready to implement such a tax.

Sylviane Lust, the director-general of IACA, said such a tax would discriminate against those travellers who choose to fly, Reuters reported.

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