Air France, airport group ADP and motorway operators criticised the French government’s plans to impose a new tax on the transport sector, saying that the move would hurt their profits and make travel costlier. The 2024 budget bill, unveiled on Wednesday, introduced the tax on road operators such as Vinci and Eiffage , as well as on airport operators such as ADP, seeking to raise an estimated E600m annually. The tax is “not at all good news ... as the airport operators will pass on this extra cost on airlines,” Air France CEO Anne Rigail told RTL Radio. The transport sector taxes are aimed at showing that the government is keen to protect the environment and tackle climate change, while also raising money for the French state. But with the fight against inflation high on the agenda of a government that has also promised not to increase taxes on households, there was much debate on who would take the hit from these environmentally focused fiscal plans. ADP, which operates Paris’ two main airports, said it would transfer 75% of this new tax to airlines, by raising the latter’s fees over a two to three-year period. Given that within the airport sector, this tax will principally hit ADP, Air France’s Rigail deemed it unfair since smaller airports used by the carrier’s low-cost rivals would not be impacted in the same way. “It poses problems for us. For us, it raises new competitive distortions which will hurt us,” she said. Highway operator Vinci Autoroutes said the tax was contrary to both the spirit and letter of highway concession contracts and that it would use all available means of appeal.<br/>
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Airline KLM denied having misled consumers with advertisements including its "Fly Responsibly" campaign, and asked a Dutch court to reject a suit brought by environmental activists, according to a filing reviewed on Thursday by Reuters. The Sept. 27 filing at Amsterdam District Court is KLM's formal response to a closely-watched suit brought by environmental group Fossil Free seeking to prevent the airline from advertising about its sustainability efforts. The group argues all such ads are misleading "greenwashing", given that flying is still a major source of carbon dioxide emissions. In its response, KLM said the 19 advertisements in the suit, including its 2019 "Fly Responsibly" campaign, were not misleading, that they have now been discontinued anyway, and that it has a right to advertise. "KLM may and must be able to communicate honestly about sustainability," it said. KLM, the Dutch arm of Air France-KLM, acknowledges that its operations cause pollution but says it plans to reduce emissions by using more biofuel and buying more efficient aircraft. "To achieve and maintain this, it is necessary to inform and motivate those involved," including customers, employers, business partners and governments, it said. In June, the airline lost a bid to have the suit dismissed. Fossil Free is seeking a public retraction and ban on future ads. Fossil Free campaign leader Hiske Arts said the organisation was reviewing KLM's response ahead of a Dec. 19 court hearing. A verdict is expected in February.<br/>
China Eastern Airlines said Thursday it will buy another 100 C919 airplanes in a deal worth $10b at list prices, in what would be the largest ever order for the jet made by the Commercial Aircraft Corporation of China (COMAC). The state-owned carrier said it had received a "substantial discount" for the deal and that the planes will be delivered in batches from 2024 to 2031. The list price for the C919 is $99m but aircraft can be sold at discounts of up to 50%, especially for new models. The deal comes five months after the Chinese passenger plane, developed by state-owned COMAC to rival Airbus' A320neo and Boeing Co's 737 MAX single-aisle jet families, took its first flight in May with China Eastern. The Shanghai-headquartered, state-owned carrier is the first user of the C919 and has bought five of the jets, of which three have been delivered. The other two are expected to be delivered later this year.<br/>