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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France will increase taxes on flights to invest more in its railways, the country’s Transport Minister Clément Beaune announced this week.
Last month Greenpeace released an analysis showing that taking a train is on average double the cost of flying.
The report compared the costs of flight and train tickets on 112 routes in Europe, including 94 cross-border connections.
Dardenne counters that the climate crisis is a much bigger threat to tourism and points to the example of wildfires and heatwaves in Europe this summer that have been disrupting holidays on the continent.
The European Commission has been working on an upcoming ‘Regulation on Multimodal Digital Mobility Services’ to improve the process of booking tickets across rail, bus and air.
It says this could be funded by windfall profit taxes, the phase-out of airline subsidies, and a fair taxation system based on CO2 emissions.
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.