Many airport landing taxes slashed to attract more flights to Spain

AENA has announced it has will effectively give new routes to Spain, and routes that expand their customer base, free landing rights and air traffic taxes.

The agreement has been announced for Spain’s 2014 general budget, and AENA will notify airlines shortly of the new rules. The government has agreed to offset 100% of these taxes, if the airlines continue to bring new passengers to Spain.

The hope is that by attracting new routes, and additional capacity on current routes, air traffic for next year will increase by at least 2%, or four million passengers, above projected targets.

100% of air passenger tax on new routes can be claimed back. The plan is that airlines can claim 75% of the tax back at the end of 2014, and the other 25% back at the end of 2015 if they continue with the routes.

And 75% of air passenger tax can be claimed back on passengers above the number carried during 2013 on existing routes. The repayment works in the same way, 75% of the amount to be claimed back at the end of 2014 and the rest in 2015 if the airline continues to bring increased passengers to Spain.

The total cost to AENA of the new scheme is expected to be about 50 million euros in 2014 and 25 million in 2015.

The scheme is on top of additional tax relief schemes currently operating in the Balearic Islands and Catalunya.

In the last decade Spain has invested 18 billion euros into its airports, according to the government. It has raised national air taxes 0,2% during that period, and has a debt of 14 billion outstanding on the investment.

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