The International Air Transport Association (IATA) reacted sharply to the announcement made by the German government of a EUR 1 billion annual burden on aviation with a new departure tax in Germany, which the government branded as an environmental initiative.

“This is the worst kind of shortsighted policy irresponsibility. It’s a cashgrab by a cash-strapped government. Painting it green adds insult to injury. There will be no environmental benefit from the economic damage caused,” said Giovanni Bisignani, IATA’s director general and CEO. His remarks were made to industry leaders gathered in Berlin as the 66th IATA Annual General Meeting and World Air Transport Summit drew to a close.

Bisignani highlighted three major concerns with the German proposal. “The proposal should be axed. It is the wrong measure at the wrong time; and it ignores the lessons learned from the failure of a similar tax in the Netherlands,” said Bisignani.