Bosnia and Herzegovina's airports unite against passenger tax

NEWS FLASH

Bosnia and Herzegovina’s four commercial airports - Sarajevo, Banja Luka, Tuzla and Mostar – have submitted a joint initiative to the country’s government and air regulator to extend a moratorium on the 1.50 euro tax per departing passengers which will be slapped onto airlines from April 1 after over a year. In a statement, Sarajevo Airport said, “In partnership with the other three airports in Bosnia and Herzegovina, we have submitted a proposal to the Ministry of Transport and Communications and the Bosnia and Herzegovina Directorate of Civil Aviation (BHDCA). The proposal requests an extension of the moratorium on the 1.50 euro aviation tax per departing passenger. The goal is to create the necessary conditions for sustained growth in air traffic and to enhance the competitiveness of all airports in Bosnia and Herzegovina, both within the region and internationally”. The submitted document includes statistical data and the recent record traffic results to demonstrate the positive effects of the tax’s temporary suspension.

The tax mandates that airlines pay the airport a fee for each departing passenger, with the funds then transferred to the BHDCA, although 30% will be retained by the airports this time around, according to the Ministry of Transport and Communications. The BHDCA has argued that suspending the tax has led to a "significant drop in revenue" and poses a risk to the Directorate's operations. Ryanair, which recently announced five new routes from Sarajevo for the upcoming summer, has urged Bosnia and Herzegovina to abolish the tax, indicating it would consider basing two aircraft in Sarajevo if the tax were removed.