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[BUSINESS] · France · 3 sources

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French aviation sector faces uncertainty over 2027 budget proposals

Proposed changes in the French 2027 draft budget are creating uncertainty across the aviation sector, affecting both regional connectivity and long-term aerospace research.

Airport operators are warning of potential service cuts due to planned tax increases. The budget proposes raising the maximum rate for taxes on major transport infrastructure from 4.6% to 12.2%. Additionally, fees for smaller regional airports intended for safety and security are expected to rise from €20 to €22 per passenger. Industry representatives, including the French Airports Union (UAF), have expressed concern that these costs may undermine the viability of regional routes, potentially prompting low-cost carriers to relocate operations.

Simultaneously, the civil aeronautics research budget faces potential shortfalls. Stakeholders are concerned about the lack of dedicated funding for the Council for Civil Aeronautics Research (CORAC), which is essential for France’s low-carbon aircraft roadmap. This funding gap threatens the development timeline for Airbus’s next-generation single-aisle aircraft and risks the integration of smaller industrial suppliers into the supply chain for programs slated for the 2035–2040 period.

Entities

Ryanair · Volotea