In an effort to address its public deficit, the French government has introduced a new tax targeting private jet departures from French airports, effective March 1, 2025. This tax imposes significant fees on passengers, depending on flight distance and aircraft type.

Tax Structure

Short-Haul Flights (up to 5,500 km):

• Jet Aircraft: €420 per passenger
• Turboprop Aircraft: €210 per passenger
• Domestic Flights within France: Additional 10% VAT applies, increasing the tax to €462 per passenger for jet aircraft.

Long-Haul Flights (beyond 5,500 km):

• Jet Aircraft: €2,100 per passenger
• Turboprop Aircraft: €1,025 per passenger

Why Has France Introduced This Tax?
The new passenger tax is part of France’s 2025 fiscal policies, introduced to increase tax revenues from private aviation. The government estimates that this tax will contribute to public finance initiatives while implementing new levies on private aviation.

The regulation applies specifically to non-scheduled private flights operated by business aircraft. It introduces a new tax framework for private aviation within France’s broader fiscal policies. This tax was officially introduced through France’s national financial law, as stated in Article L. 422-22 and Article L. 422-22-1 of the French Tax Code.

It is projected the new tax rates will generate €800-€850 million in additional revenue. The country’s new Minister for Public Accounts comments: “I am in favour. It is a measure of fiscal and ecological justice,” she told Le Parisien on Jan 5. “The 20% of the population with the highest incomes are responsible for more than half the expenditure on air travel.”

Key Details
Applicability: The tax applies to all passengers departing from France on private jets, with the amount depending on flight distance and aircraft type.
Implementation Date: 1st March 2025.
Exemptions: There are no known exemptions for business aviation at this stage.
VAT: A 10% VAT will be applied on top of the tax for domestic flights within France. However, this VAT does not apply to international departures from French airports.
Example: For flights on business aircraft with jet engines departing from France to European destinations, each passenger will incur a €420 tax (without VAT). However, for flights departing and arriving within France, the tax increases to €462 per passenger due to the 10% VAT surcharge.

How Will This Affect Sentinel Aviation
To comply with this new regulation, Sentinel Aviation will integrate the tax into all pricing for flights departing from France. Implications include:

Increased Operational Costs: The substantial per-passenger taxes will elevate the overall cost of flights. For instance, a long-haul flight with 10 passengers would incur an additional €21,000 in taxes.

Pricing Adjustments: Sentinel Aviation may need to adjust pricing structures, potentially passing on the increased costs to clients.

Competitive Positioning: Operators based in countries without similar taxes might offer more competitive pricing, potentially influencing clients to choose alternatives outside of France.

Operational Strategy: Sentinel Aviation might consider adjusting flight operations, such as repositioning aircraft to airports in neighbouring countries to mitigate the tax impact.

What Does the Business Aviation Industry Say?
Industry stakeholders, including the European Business Aviation Association (EBAA), have expressed concerns about the potential negative effects of this tax on the business aviation sector in France.

Winning a last-minute reprieve to the new tax on commercial business aircraft departures is the hope of the EBAA. Its French branch has appealed to the Paris government to nullify the new tax on the grounds that it is “unconstitutional”. And the association hopes for a quick decision, according to an online briefing this week.

The new tax structure represents a 300% hike to previous passenger taxes, said Charles Aguettant, chairman, EBAA France during the briefing. The association has lobbied the French government to explain that most business aircraft departures in France were related to economic growth or for medical and other life-critical missions with only a minority devoted to leisure. “We hope to have some discussion with them to convince them that these taxes are ridiculous,” said Aguettant. “They are going to kill companies and not only French companies.”

Paul Tiba, board member EBBA France said the new fiscal measures were “a disaster tax” targeting business aircraft with 19 or fewer passengers. It remains unclear if business liners such as the ACJ TwoTwenty or the Boeing Business Jet with up to 19 passengers would be subject to the new tax or escape it. “It’s definitely only a political decision and not an economic or any kind of physical decision. It’s purely political,” said Tiba.

The EBAA worries the tax will damage the charter sector and exert a de-multiplier impact throughout the country’s general aviation. Casualties could include business aircraft support services such as FBOs, fuel services and other suppliers, warned webinar speakers.

It is thought that fractional flights, cargo flights without passengers and helicopter sorties will not be subject to the tax. The association is seeking urgent clarification on this and other related topics from the French government.

The association is pinning its hopes for a nullification of the new tax on an appeal to the Conseil Constitutionnel or Constitutional Counsel – the highest authority in France. “We have asked the Conseil Constitutionnel to declare that this article is not in conformity with the constitution,” said Nicholas Fischel, secretary, EBAA, France.

The challenge partly rests on the assertion that air travel is fundamentally the same whether passengers fly on a scheduled airline flight or a business aircraft. “There is no objective difference between Air France and a business flight which can justify the different [level] of tax,” said Fischel. The counsel’s ruling may come as early as tomorrow, he added.

In Summary
Sentinel Aviation should closely monitor these developments and assess both short-term and long-term strategies to navigate the evolving regulatory landscape in France.