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Airlines are still waiting for the Urban government to take action, but more may follow Ryanair in passing the extra profit tax

Airlines ; additional profit; special tax; Ryanair; Orban government;

2022-06-10 20:20:00

An official investigation is trying to punish Ryanair, the state agency that caused a government scandal for passengers. More people can follow the wooden bench.

The government launched a consumer protection investigation against Ryanair after the low-cost airline told its passengers that it had to impose an “flying contribution” tax on them by the Cabinet these days. Our newspaper has been informed in several places that Ryanair is not the only company that has decided to pass the new tax on the basis of additional profit: according to our information, the operators of charter flights for travel booked by travel agencies have also indicated that they will do so. Then ask for a refund.

As you know, the government was just before the elections, and after the referendum, it decided to try to close the $2 trillion budget gap by imposing special taxes on large corporations, citing alleged extra profits. The additional tax also affects airlines: from July 1, passengers departing from Budapest will have to pay. You will have to pay HUF 3900 for travelers to the European Union and many other countries listed, such as the United Kingdom, Norway and Switzerland, and HUF 9,750 for travelers elsewhere.

Many immediately feared that airlines would pass on the cost to passengers, especially after years of very difficult epidemics and losses, which meant that people would eventually bear the consequences of increased cabinet spending. Ryanair quickly made it clear that it considered the move by the Orbán government “more than stupid”, saying that the airlines were not making extra profits but incurring huge losses for the second year in a row due to the drop in traffic due to Covid. Wizz Air has never previously ruled out that a tax rate will make tickets more expensive, and Ryanair has. (In addition, Ryanair has invoiced the remitted tax for tickets already sold, angering passengers.)

From Lufthansa to Air France to Air Canada, our newspaper has reached most of the airlines operating flights from Budapest. The companies that responded, as well as Ryanair, gave an evasive answer about whether they plan to pass the tax.

Even for companies waiting, there may be a message that Cabinet has responded to Ryanair’s move at a high and decisive level: Economic Development Minister Marton Nagy called the airline’s move unacceptable and unfair on Friday and initiated consumer protection measures. Martin Nagy also urged Consumer Protection to examine Ryanair’s pricing practices to ensure they meet all European standards, “particularly given that such an airline tax has long been in place in many European countries.” “All businesses and should not pass to the population,” the minister said.

In many cases, this may put the government in an impossible position, with the goal of reducing ticket prices. Although it is not a typical case, it is not very rare: sometimes a plane ticket costs about or even less special tax. On Friday, for example

In principle, it is not known how many passengers will leave Budapest who will have to pay each year. At least for our newspaper, Budapest Airport (BA) said that passengers departing from Ferihegy are not only separated from their transit traffic from non-taxed transit passengers.

It is doubtful, however, that

According to data from the Central Statistical Office, 7.9 million travelers left Budapest in the last “year of peace” before the outbreak of the pandemic. According to our professional sources, about 10-20 percent of those who board a plane in Ferihegy can be transit passengers. Given this, 2019 data, and both types of taxes, a $30 billion forecast is unrealistic. It is a question of when traffic will return to the 2019 level: 3 million passengers came to the airport in four months this year, while in 2019 three months were enough for such traffic, or at present the numbers are lower than before the pandemic.

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