German passengers have been left upset this week as the national government implements a brand new levy on flight tickets. Of course, this is not just upsetting passengers but airlines as well, who say that they will have a harder time getting people to fly now.

This new levy, which was first announced earlier this year, will add some €8 on tickets to 52 European destinations. However, it will also be adding €25 to 50 airports in Asia and Africa, and €45 to all other destinations.

Chancellor Angela Merkel confirmed the tax will be imposed on all flights out of the country starting on January 1 2011. This includes tickets booked starting today. Thus, people no longer have a chance of being able to avoid this fee.

This levy is all part of a proposed budget designed to save the German exchequer €80 billion in the period to 2014. Wolfgang Schaeuble, the Finance Minister, said that timing was crucial. He said that they are implementing the measure with immediate effect following the Cabinet resolution. Otherwise, there will be a rush in ticket buying aimed at avoiding the tax.

This tax has been greeted with hostility from many airlines. This includes Lufthansa and Air Berlin, who are two of the largest carriers in the country. In fact, in a recent statement, Lufthansa said that such unilateral action will weaken Germany as a base for the aviation industry. It will massively distort competition. The relationship between the level of the tax and the distance flown will put Germany, which is a leading export nation that relies very heavily on global connections, at a very bad disadvantage.

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