The International Air Transport Association (IATA) has welcomed the announcement that Austria will halve its air travel tax from January 1 2018 and has said the UK Government should make a similar move.
The Austrian Ministers Council confirmed the decision was taken to increase the attractiveness of Austria as a business and tourism destination, to secure the future of Vienna airport as an international aviation hub and to create jobs and increase economic development.
IATA director general and CEO Alexandre de Juniac said: "In cutting its travel tax, the Austrian government has taken an important step in the right direction.
"This is great news for Austrian air travellers and for everyone thinking of visiting Austria for tourism or business.
"Other countries should take note, particularly Germany and the UK, which continue to heavily tax air passengers.
"In fact, the UK Chancellor has an opportunity in today’s budget statement to signal that Britain is open for business with a major cut in UK Air Passenger Duty."
The new structure of the Austrian tax will be €3.50 for short haul, €7.50 for medium haul, and €17.50 for long haul.
IATA said the cuts will create economic benefits, but these would be maximised if the tax were reduced to zero.
Analysis by IATA in 2015 revealed that completely removing the tax would increase international travel by 2.7% and create 1700 jobs in the country.
"While the tax cut is good news, it is not the end of the story. There is more that the government can do to strengthen air transport in Austria. Ultimately, the tax should be scrapped completely," added de Juniac.
