KLM strongly criticizes Dutch Parliament's proposal to impose tax on transit travelers.

22-09-2023
PixelVortex
KLM strongly criticizes Dutch Parliament's proposal to impose tax on transit travelers.
Passenger aircraft operated by KLM, at Schiphol airport in Amsterdam.
Jasper Juinen/Bloomberg
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KLM Airlines has strongly criticized the recent proposal by the Dutch Parliament to impose a tax on transit passengers, stating that it will have a detrimental impact on flight connections in the Netherlands. The proposed measures, which also include taxing private jets, were passed with a majority vote on Thursday. The aim of the tax is to raise funds to lower the energy bill for households in the Netherlands.

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KLM, the Dutch arm of Air France-KLM, has warned that this proposal will significantly affect flight connections from the Netherlands, particularly from Amsterdam's Schiphol Airport, which serves as a major global hub. The airline predicts that ticket prices will increase by approximately €80 to €100 from January next year. Additionally, passengers in the Netherlands may no longer have direct flights to certain destinations from Schiphol Airport.

In a statement, KLM highlighted the immense consequences of this proposal for both the company and the country. As per the airline, six out of every ten KLM passengers transfer at Schiphol Airport. The introduction of the tax is expected to lead to a 6.1% increase in ticket prices for transfer passengers at the hub and result in a potential loss of up to 34% of transfer passengers, according to government-commissioned data.

Schiphol Airport, recognized for its significant contribution to the Dutch economy, has expressed concerns about the potential negative impact on its competitive position. The airport spokesperson emphasized the risk of compromising the airport's hub function. The Ministry of Finance is currently evaluating the implications and feasibility of the proposed tax.

During the parliamentary debate on the proposal, Dutch Prime Minister Mark Rutte acknowledged the potential adverse effect on Schiphol's hub function and stated that such measures would ideally be implemented in an EU context.

The proposed tax on transit passengers, put forward by the Christian Democrats (CDA) party, still needs to be approved by the Dutch Senate.