Why are flights cheaper than trains in Europe?
Why are flights cheaper than trains in Europe?
Train travel is often more expensive than flying. Could taxing aviation to invest in the rail industry help change that?
One of the main reasons for the disparity is the lower taxes that the aviation industry benefits from.
If you fly from Paris to Barcelona the airline not only pays no VAT, but is also exempt from kerosene tax. If you make the same journey by train, the rail company will pay an energy tax and passenger VAT. This means higher costs for the company which are usually reflected in ticket prices.
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Is it really that surprising that planes are cheaper than trains ? Rails require massive investments and upkeep cost. It's also much more difficult to run different operators on the infrastructure so there is very little competition. Not sure a tax is going to change any of that.