Mainly Lufthansa affected: Germany wants kerosene tax for domestic flights
If the German government's latest plans to raise money are implemented, the Lufthansa Group in particular will be faced with significantly higher costs in domestic air traffic. After air traffic tax, VAT and other taxes, they now also want to levy a kerosene tax. Of course, this is once again being done under the guise of environmental protection, but the main aim is to bring fresh money into the cash-strapped coffers of a de facto bankrupt Germany. Due to international treaties, no kerosene tax can be levied on international flights. The situation is different in domestic traffic. The Federal Republic would not be an isolated case here either, as Norway, for example, has been asking for additional funds in this segment for some time. Apart from a few smaller providers, the German kerosene tax would primarily affect the Lufthansa Group, including its low-cost subsidiary Eurowings. Other providers, such as Ryanair and Easyjet as well as Lübeck Air, have already largely withdrawn from domestic business. Domestic revenue has now halved - in direct comparison with the level before the corona pandemic. Due to a lack of competition, exorbitantly high flight prices are already prevalent, and in some cases the train is not a cheap or reliable alternative. Domestic German air travellers would therefore have to be prepared for any kerosene tax to be passed on to passengers in the form of higher prices. This will lead to a further decline in demand and, as a result, most likely to lead to the closure of further domestic routes. It is therefore questionable whether the German Finance Ministry will not instead indirectly accelerate the heartfelt wish of "environmentalists" - the closure of domestic flights - or whether
