HomeEconomySky-high prices for plane tickets abroad: companies try to justify themselves

Sky-high prices for plane tickets abroad: companies try to justify themselves

Faced with rising costs specifically for these destinations, operators are asking the government to review territorial continuity arrangements.

+31.6% This is the increase in April, more than a year, the price of plane tickets to overseas France from metropolitan France. If we compare with April 2019, inflation reached 30.3% with some disparities, with the largest increases being observed in Guyana and the West Indies.

Same trend in departure from abroad: the increase in ticket prices reached 28.3% compared to April 2019. Martinique and Guadeloupe registered the largest increases (respectively +45% and +44.3%), while Guyana and Reunion show lower increases, respectively +29.2% and 16.8%.

An unprecedented situation that worries tourism professionals but also the political leaders of these communities in the name of territorial continuity. To the point that a parliamentary commission of inquiry is launched to understand why these prices are skyrocketing. Because inflation is higher than the average for all flights (+20.1% in one year, +19.8% for international flights).

Tickets up to 45% from Martinique

Questioned, the French airlines that operate in these destinations tried to justify themselves. In a press release, Fnam, the professional organization of the aviation sector which represents more than 95% of French air transport, firstly proposes a specific increase in costs.

“The companies recalled the existence of a persistent discrepancy in the prices of kerosene in the French Departments of America and Reunion with those practiced in metropolitan France. The comparisons reveal, in fact, a higher price of around 25% in the French Departments of America and 10% in Réunion. For the record, the price of kerosene only represents about a third of airline costs,” we can read.

“Regarding the French departments of America, the airlines have initiated a dispute before the administrative court following the substantial increase in the price of kerosene from June 1, 2022 by the Société Anonyme de West Indies refinery, a monopoly player that practices a system of equalization between administered products and an unregulated product such as kerosene”, continues the National Federation of Aviation and its trades.

It also denounces “the increase in taxes and fees (air navigation, security) in recent months.”

Exogenous cost increases say companies

In summary, the sector considers that these increases are exogenous and therefore asks the public authorities to “take measures that allow airlines to continue offering competitive air services to passengers”. expressed expectations.

Due to the principle of equality of mobility and unity of the Republic, the State grants 257 euros per year and per inhabitant to privateers under this territorial continuity but only 16 euros to groceries.

Finally, the sector warns “against plans for additional taxation of airline tickets to finance rail transport infrastructure in mainland France.” A direct attack on the government’s €100 billion rail plan for 2040.

Total denial of a new tax to finance the railway

The Scara, the Union of Autonomous Airlines (which brings together half of the French airlines), I had already said everything bad what I thought of this perspective.

Scara recalls that the sector already finances road, rail, river and port infrastructure worth 200 million euros per year through the eco-contribution implemented in 2020, a tax on plane tickets (known as the “Chirac tax”).

The railway plan of 100,000 million will not be fully financed by the State, which should put 20,000 million euros (or even a little more) in the pot through the Public Finance Programming Law. Europe, the regions, but also air transport and motorway companies will also participate.

“It is normal for companies that have comfortable margins and are in good health – I am thinking of the motorway companies – to contribute to the financing. Our network is well built. Perhaps we can finance, through tolls or through contributions, the train or less pollutants. This is a debate that we will have for the summer”, declared Clément Beaune, Delegate Minister of Transport.

Author: Olivier Chicheportiche
Source: BFM TV

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