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Air France Slams French Plan for New Tax on Plane Tickets

  • Shares tumble after minister unveils eco-levy on Tuesday
  • Airline says it’s already at a competitive disadvantage
Air France Operations At Charles de Gaulle Airport Ahead Of Air France-KLM Group Earnings
Photographer: Christophe Morin/Bloomberg
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Air France condemned the French government’s plan for a new tax on flights, saying the levy would hurt the airline’s ability to invest in less polluting planes and aggravate already high costs of operating in the country.

“This new tax would significantly penalize Air France’s competitiveness,” the French arm of Air France-KLM said in a statement on Tuesday, estimating the extra costs would reach more than 60 million euros ($67 million) a year. “The company needs to strengthen its investment capacity to more rapidly reduce its environmental footprint, notably as part of its fleet renewal policy.”