French Business Aviation Impacted by High Solidarity Tax in 2025

French Business Aviation Faces a Crossroads Amid Punitive Taxation

France’s business aviation sector, a significant pillar of the national economy and a critical link for regional development, is currently navigating severe turbulence. The industry finds itself at the center of a contentious debate following the government’s decision to sharply increase the “solidarity tax” (Taxe de Solidarité sur les Billets d’Avion, or TSBA) as part of the 2025 budget. This measure, intended to accelerate the country’s environmental objectives, has been labeled by industry representatives as a punitive and counterproductive policy that threatens an “unprecedented industrial and competitive decline.”

The core of the issue lies in a fiscal policy that, according to the European Business Aviation Association (EBAA) France, is based on a caricature of the sector as a mere “luxury transport.” In reality, the association argues that over 80% of business aviation flights serve professional purposes, connecting economic hubs, research and development laboratories, and manufacturing sites across the country. By serving 262 local Airports, far more than the hundred serviced by commercial Airlines, business aviation plays an indispensable role in territorial cohesion and supports a wide array of non-relocatable jobs. The current tax structure, however, risks undermining this vital economic contributor, creating a precarious situation for French operators.

As discussions for the 2026 budget unfold, the industry is sounding the alarm over what it describes as a fight for survival. The increased tax has not only placed a heavy financial burden on French companies but has also created a distorted market that benefits foreign competitors. The situation highlights a fundamental clash between environmental policy and economic pragmatism, raising critical questions about national sovereignty and the future of a sector where France has historically been a global leader.

The Solidarity Tax and Its Unintended Consequences

Effective March 1, 2025, the amplified solidarity tax placed France among the most heavily taxed nations in the world for business aviation. The rates for charter flights are reported to be 30 to 50 times higher than those for passengers in business or first class on commercial airlines. For flights within Europe, the tax can range from €210 to €420 per passenger, while long-haul international flights can see a staggering tax of up to €2,100 per passenger. This means a single flight carrying ten passengers could incur a tax liability of €21,000, a cost that fundamentally alters the economics of operations for French companies.

The industry does not refuse to contribute to national efforts but contests a system it deems unjust in its design and imbalanced in its application. A critical flaw identified by EBAA France is the tax’s self-declaratory nature. This has led to a significant enforcement gap, where French operators diligently comply with the levy while many foreign operators reportedly do not. This discrepancy has created a severe competitive distortion, effectively penalizing domestic companies and rewarding their international counterparts.

The fallout from this policy has been swift and stark. Rather than curbing demand, the tax appears to be redirecting it. The result is a situation where foreign competitors are capturing French market share without contributing to the national tax base, supporting local employment, or investing in the French industrial ecosystem. This outcome runs contrary to the stated goals of the tax, producing a net loss for the state and weakening a strategic national industry.

A Sharp Decline for French Operators

The data paints a concerning picture of the tax’s impact on domestic businesses. According to EBAA France, the third quarter of 2025 saw a dramatic 21.8% decline in flight activity for French-domiciled operators. This contraction is not indicative of a shrinking market but rather a shift in market dynamics. During the same period, traffic for foreign operators flying into and out of France increased by 4%. This divergence strongly suggests that customers are simply choosing non-French carriers to avoid the hefty tax, directly benefiting international competitors at the expense of the French aviation sector.

This decline has immediate repercussions for the French economy. The business aviation sector supports over 101,500 direct and indirect jobs, from pilots and maintenance technicians to logistics and airport personnel. For instance, Le Bourget Airport alone accounts for over 3,500 direct jobs and more than 10,000 induced jobs. A sustained downturn in activity for French operators threatens these non-relocatable jobs, weakens specialized skills, and jeopardizes a vital industrial ecosystem.

The fiscal mechanism, presented as virtuous, is producing the opposite of the intended effect: it is destroying the French flag, weakening non-relocatable jobs, drying up rare skills, preventing the ecological transition, and weakening a sector where France was not only a pioneer but an internationally recognized leader.

Furthermore, the tax is failing to meet its revenue projections. The government anticipated collecting €150 million from the measure, but EBAA France estimates that only a few tens of millions will likely be gathered. This shortfall is a direct consequence of the reduced activity from compliant French operators and the widespread non-payment by foreign entities. The policy is thus failing on two fronts: it is not generating the expected fiscal returns and is actively harming the very industry it taxes.

A Sector Under Pressure and a Call for Reform

The French business aviation sector contributes an estimated €32.1 billion in economic output, a figure that underscores its importance beyond connecting decision-makers and industrial sites. It is an essential component of the broader aviation industry, fostering innovation and supporting a complex supply chain. However, the current fiscal environment threatens to dismantle this strategic asset, pushing business and investment toward more favorable European neighbors.

The industry’s representatives argue that the government’s approach is shortsighted, ignoring the sector’s commitment to decarbonization and its potential to lead in Sustainability aviation. By imposing a punitive tax, the policy drains capital that could otherwise be invested in greener technologies, SAFs, and more efficient aircraft. The tax revenue is not specifically earmarked for the sector’s ecological transition, further fueling criticism that the measure is more symbolic than substantive.

In response to this crisis, and with the 2026 budget under discussion, EBAA France has put forward a clear set of demands aimed at rectifying the situation. The proposals are not a rejection of fiscal responsibility but a call for a more balanced and effective approach that aligns with both economic and environmental goals. The association is urging lawmakers to reconsider the current path before irreversible damage is done to the industry and to French economic sovereignty.

The Path Forward: Industry Demands

The primary demand from EBAA France is a significant reduction in the solidarity tax rate for business aviation. The goal is to align the tax level with that applied to business and first-class passengers on commercial airlines. This would remove the current disproportionate burden and restore a measure of fairness to the fiscal landscape.

Secondly, the industry is calling for the implementation of equitable and effective collection mechanisms. A system that ensures all operators, regardless of their nationality, contribute equally is essential to eliminate the current competitive distortion. This would level the playing field and ensure that the tax is borne fairly across the market, rather than falling almost exclusively on domestic companies.

Finally, EBAA France insists that the revenue generated from the tax should be specifically allocated to the decarbonization of the aviation sector. Earmarking these funds would ensure that the industry’s contributions directly support its transition to a more sustainable future. This would transform the tax from a punitive measure into a constructive tool for innovation, helping the sector invest in the technologies needed to meet long-term climate goals.

Concluding Section

The predicament facing French business aviation serves as a stark case study in the law of unintended consequences. A tax designed with environmental and fiscal aims has, in practice, triggered a competitive disadvantage for domestic companies, failed to generate projected revenue, and potentially slowed the sector’s green transition by draining its resources. The reported 21.8% drop in activity for French operators, contrasted with the 4% growth for their foreign counterparts, illustrates a clear and immediate transfer of economic activity away from France.

As the debate over the 2026 budget continues, the French government stands at a critical juncture. It can either maintain a policy that is actively undermining a strategic national industry or heed the industry’s calls for reform. Adopting a more balanced tax structure, ensuring fair collection from all market participants, and dedicating the revenue to decarbonization could forge a more sustainable path, one that secures jobs, fosters innovation, and maintains France’s leadership role in the global aviation landscape.

FAQ

Question: What is the “solidarity tax” (TSBA)?
Answer: The Taxe de Solidarité sur les Billets d’Avion is a passenger tax on all flights departing from France. In 2025, the rates for business aviation were increased significantly, reportedly to levels 30 to 50 times higher than for commercial first or business class.

Question: How has the tax impacted French aviation companies?
Answer: According to the EBAA France, French operators saw their flight activity decrease by 21.8% in the third quarter of 2025, while foreign operators experienced a 4% increase in traffic in France. The industry claims this is due to a competitive distortion created by the tax.

Question: What are the main demands of the business aviation industry?
Answer: EBAA France is asking for three main changes in the 2026 budget: lower the tax rate to align with commercial aviation, implement a fair collection system for both French and foreign operators, and earmark the tax revenue for the sector’s decarbonization efforts.

Sources: EBAA France