10% Tax Increase

[SurfJames]

This Monday, 2nd July 2012, the air travel tax increase will come into effect in all AENA controlled airports in Spain. The increase was approved by central government in April this year (2012). All air travel in Spain will experience an increase of 10.2%, reaching up to 50% in Madrid-Barajas and Barcelona.

Tickets purchased prior to the approval of these regulations are exempt from these taxes increases. This means that if a client purchased a ticket in January, for travel in August, they will not have to pay this increase. For this reason, various airlines such as Vueling, have detected a rise of up to 15% in ticket sales, compared to the same period last year.

The Canary Islands government, together with the tourism sector, has informed the central government of how harmful this increase will be for the Islands tourism. This comes as the Balearic islands have been awarded with a 10% discount on these increases on air travel.

What a good idea. 

Fine property owners for renting out, only allow taxi drivers to pick up at airport and now increase the cost of travel by 10%.

It's a race to the bottom. 

[Captain Sensible]

IGIC tax has also gone up today, plus a big rise in the cost of petrol.  The Canarian Government are trying to recoup some money due to a drop in funding from Central Government in Madrid.

[fifi]

Airport landing fees to be lowered on 'quiet' days (Island Connections article  13.06.2012 )

Airlines flying to the Canaries from the Spanish mainland are to be encouraged to schedule flights on non-busy days in return for generous landing fee discounts.


The Spanish government confirmed yesterday that it had modified new legislation on the fees to insert the incentive, which lists specific days on which flights will benefit from the lower charges. The idea is to persuade airlines to add flights to Gran Canaria and Fuerteventura on Tuesdays, Lanzarote on Wednesdays and Tenerife South on Thursdays. Flights to La Palma on any day will be eligible for the 50% discount.

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Lets hope that the airlines avail of the reduction in landing fees. That would help reduce the price of flights.

[oystercatcher]

So Mr O'Leary.  Airport tax reductions mean See you Next Tuesday. How appropriate.

[potash]

But Fifi the airlines have had no landing fees hear in the canaries over the last couple of years so in fact they are having  to pay more now coupled with fuel prices they are on the slippery slope this coming winter. The tourist is there only real hope of income here so taxing the arrival tool is not a wise move.

[fifi]

As far as I can remember one of their incentives finished 31st March this year. I think it was the no landing charges John.  If I am right, I would see the offer of a reduction on quiet days as being a way to soften the blow. From memory the article said that the Canary Islands were asking for special status and felt that they should have an extension. The airlines may take up the 50% offer and start to fly more routes into Fuerteventura if it makes them more competitive.

I see British airways have decided to absorb the airtravel tax themselves. Ryanair will be adding it on along with many others.

[Captain Sensible]

Petrol went up by 5 cents a litre yesterday!

Electricity prices have gone up too!

If you have got any money then the Summer Sales started today.