Regional governments, aviation associations and business groups intensified pressure on the federal coalition on 23 October to abolish the 12-euro Air Passenger Duty (APD) levied on every departing passenger. A cross-party urgent motion in the Lower Austrian parliament calls the tax ‘site-damaging’ and blames it for a 4.5 % passenger slump at Vienna-Schwechat while nearby Bratislava Airport booms (+99 % YTD). The initiative is backed by Vienna Mayor Michael Ludwig and Lower Austria’s Governor Johanna Mikl-Leitner, both shareholders of Flughafen Wien AG. Airlines including Austrian, Ryanair and Wizz Air argue the charge makes short-haul tickets up to €30 costlier than in neighbouring countries, driving travellers across the border. Trade body Aviation Industry Austria estimates that abolishing the levy could create 2,500 jobs and add €188 million in annual GDP. The Finance Ministry has so far defended the APD as a climate instrument that generated €180 million in 2025. Yet critics note that Germany reduced its own tax for transfer passengers and that France plans to channel proceeds into sustainable aviation fuels, raising competitiveness concerns for the Austrian hub. Corporate travel managers monitoring trip costs to Vienna should watch the upcoming budget revision: if the duty is scrapped in 2027, TMCs will need to adjust fare projections and reassess the attractiveness of Schwechat relative to Bratislava and Budapest. The debate also feeds into wider EU discussions on aligning green levies with Single Market freedoms. Brussels is expected to publish guidelines on passenger taxes early next year; Austria’s decision could set a precedent for smaller member states seeking to balance sustainability and connectivity.
Source: Heute.at / trend.at
