IATA concerned over French tax plans

The aviation industry has attacked French President Jacques Chirac's proposals for a global aviation tax to help fight AIDS and foster the development of poor countries.

Giovanni Bisignani, the International Air Transport Association's chief executive, rebutted Chirac's call for a one euro levy on every air ticket sold by pointing out the contributions the aviation industry already makes to development.

He highlighted the role air transport plays in Africa, both as a source of transport and as one of the principle methods of delivering aid to impoverished areas, whilst criticising U-turns made by the UN over the tax issue.

"Airlines make a massive contribution to development by bringing tourists to destinations and transporting goods to markets," Mr Bisignani said.

"Making air transport more expensive is akin to biting the very hand that feeds development."

President Chirac announced his proposals at the opening session of a two-day international conference on funding development through taxation.

France will begin enforcing its own air tax to finance development programs in July this year.

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