BERLIN, April 1 (Reuters) - German Chancellor Friedrich

Merz's cabinet approved plans on Wednesday to reduce air traffic

tax from July, taking it back down to May 2024 levels in an

attempt to boost the aviation sector.

International airlines have long complained that flying to

and from German airports was too expensive and threatened to

reduce their presence here.

* Move fulfils a pledge in the coalition deal between Merz's

conservatives and Social Democrats

* Reverses a 2024 tax increase made by previous government

as it sought to fill a budget gap

* Duty is part of costs paid by airlines at German airports,

along with airport charges and fees

* Aviation industry had warned tax meant Germany would lag

other countries as an air hub

* Tax will be reduced by 2.50 euros ($2.90) per ticket for

short-haul flights, 6.33 euros for medium-haul, 11.40 euros for

long-haul

* Takes effect from July 1

* Cost to federal government will be around 170 million

euros for second half of this year and 355 million euros in

subsequent years

* For passengers to benefit, airlines will have to pass on

reductions

* Aviation lobby says move is a step in right direction but

wants further steps to cut cost of doing business in Germany

($1 = 0.8627 euros)

(Reporting by Holger Hansen;

Writing by Madeline Chambers; Edting by Emelia Sithole-Matarise)