BERLIN, May 22 (Reuters) - Germany decided late on
Thursday to reduce air traffic tax from July, 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 there
* German Chancellor Friedrich Merz's cabinet in April
approved plans to reduce air traffic tax from July, down to May
2024 levels, in an attempt to boost the aviation sector.
* The move fulfils a pledge in the coalition deal between
Merz's conservatives and Social Democrats to reverse a 2024 tax
increase made by previous government
* The duty is imposed on airlines at German airports, on top
of airport charges and fees
* The tax will be reduced by €2.50 ($2.91) per ticket for
short-haul flights, €6.33 for medium-haul, €11.40 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
($1 = 0.8604 euros)
(Writing by Ludwig Burger, editing by Kirsti Knolle)