French society has long been particularly sensitive to ensuring a fair distribution of wealth. Regardless of the government’s composition, taxes remain higher in the country than in many others. More recently, French citizens have shown a growing concern for the impact of global warming. Combine those two touchy themes, and business aviation finds itself among the accused.

Since national-level measures can be the starting point for Europe-wide regulations, the business aviation industry should watch the ongoing debates and lawmaking process in France closely. Additional taxes and use restrictions in the country might be the harbinger of a more stringent framework and disincentives for business aviation throughout the entire European Union (EU).

The paradox, of course, is that France is home of two of the most important business aircraft manufacturers. Daher is mostly known for its TBM turboprop singles. Dassault Aviation has long been a strong player, with its Falcon business jets at the high end of the market.

Among the very first business jets were French designs. The four-seat Morane-Saulnier MS.760 Paris—part of Daher’s legacy—flew in 1954. The Dassault Falcon 20 (nee Mystere 20) flew in 1963.

Dassault uses France’s image for luxury products, as well as the identity of a recognized nation in aircraft engineering, to promote its upscale Falcons. It is therefore probably with at least some disbelief that CEO Eric Trappier has been watching recent developments.

Over the last 12 months, two business airports—Le Bourget and Chambery—have been the targets of sit-in demonstrations by Extinction Rebellion’s activists. At Lyon-Bron airport, they symbolically attacked business aircraft that were part of a general aviation trade show.

The center-right government disapproves of such actions but has been taking unprecedented measures to curb what is being increasingly perceived by some as unjustified use of a CO₂-intensive mode of transportation.

At the NBAA business aviation show in October 2022, Trappier said recent moves to regulate business aviation in France were politically motivated and did nothing to address overall issues of environmental sustainability.

Part of the “flight-shaming” issue in France is tied to the use of the term “private jet” with corporate aircraft, rather than “business jet,” he said. “There is a kind of turmoil in France in particular where they are called private jets—they are not called business jets. A business jet supports economic development and supports companies to extend their capabilities to commerce and industry. It makes a difference.”

The different wordings reflect the lack of a consistent definition. In his proposed bill banning business jets, opposition Green Party Deputy Julien Bayou suggests the category should be defined as including on-demand flights for 60 passengers or less. Time constraints prevented the bill—which had little chance of passing–from being officially presented in April at the National Assembly. But it prompted further discussion and French Transport Minister Clement Beaune announced an unspecified additional contribution for business aviation. 

Last summer, Beaune sparked a debate inside the government. He had called for restrictions on the use of private jets. Quoted by French newspaper Le Parisien, he said: “There can’t be a means of individual travel for comfort at a time when the president’s campaign [to reduce carbon footprints] requires everyone to make an effort.” Not everyone in the government is seeing business aviation as negatively as Beaune, but the budget for 2023 nevertheless includes a new fiscal measure targeting the sector.

Fuel Tax Implications

The fuel tax known as TICPE (a French acronym for domestic tax on the consumption of energy products) was doubled for non-commercial flights.

The TICPE for non-commercial flights now stands at an amount identical to that for individual cars. “Business aviation is a tool for business development, the issue is rather to regulate some usages,” a representative at the Transport Ministry says. “At the national level, the government is working on other measures so that business aviation contributes to the ecological and energy transition in a fairer and more proportionate way.”

It has yet to be seen whether France will try to extend the reach of the tax increase. In the meantime, it impacts only a small proportion of business aviation activity.

“That is just a spectacular measure without a strong basis,” says Charles Aguettant, vice president of the European Business Aviation Association’s French chapter, EBAA France.

Most business flights take place under an air operator’s certificate (AOC), or as part of an association for developing commercial interests (GIE, which usually regroups small companies), he explains. Together, AOC and GIE flights account for 90% of the activity in business aviation, according to Aguettant. That means that the rest, for which the tax has been doubled, account for just 10%.

“With its minimal impact, the measure can be called greenwashing,” says Aguettant. “How better is it than banning motorcycles on weekends?”

A regulation should not make a difference between two kinds of users, transport-focused environmental NGO Transport & Environment (T&E) points out. Users of directly owned aircraft are not on an equal footing with those those flying on an aircraft operated by a third-party but actually owned via a tax-optimization scheme, Matteo Mirolo, T&E’ s sustainable aviation policy manager, emphasizes. “The distinction does not make sense from an environmental viewpoint,” he says.

Extending the tax increase to commercially operated flights would be tricky because of international agreements on fuel taxation. It would not be impossible, however, both inside the EU or within bilateral aviation agreements.

At the European Union political level, the French stance is being closely followed. “It is difficult to understand where the French government stands,” says a spokesman at EBAA’s headquarters in Brussels. “At EU transport ministers meetings, which happen twice a year, France is one of the strongest proponents of additional incremental measures. What is not clear is whether they want to go toward more subsidies to incentivize green solutions, or bans and regulations.”

What is clear is that the focus on sustainability is very important to French society and politicians, he adds.

In commercial aviation, French law now prohibits regular domestic flights on routes where a rail alternative of under 2.5 hr. is available. According to figures from T&E, the three routes affected by the French flight ban (Paris-Orly to Bordeaux, Nantes and Lyon) represent just 0.3% of emissions from flights departing from mainland France, or 3% of domestic emissions.

Sword of Damocles

“The French short-flight ban is a good and symbolic start—as it shows that we must cut aviation emissions by reducing demand—but it will have little impact on reducing emissions,” a T&E representative says.

While the 2.5-hr. rule does not affect business aviation, the sheer existence of the regulation is a Sword of Damocles. Extending it to other types of aviation operations would be relatively straightforward. That threat is all the more serious, as half of all business flights in France in 2019 were shorter than 500 km (270 nm), analysis by T&E shows.

At the heart of the controversy is whether business aviation is about actual business or leisure. “About 80% of our activity is for business purposes,” Aguettant says. “In the remaining 20%, you can find state flights and organ transfer, which means leisure flights account for a tiny portion.”

But so-called business aviation is really a leisure-driven sector, Brussels-based T&E contends, citing air traffic statistics from Eurocontrol. In Europe, private jet departures are up by 50% in July compared to January, T&E asserts. The NGO surveyed 10 “holiday airports” in Europe, such as Nice Cote d’Azur and Cannes Mandelieu, and found they represent one-third of all business aircraft flights in July.

“Let’s debunk the myth of the businessperson making an essential trip for a meeting in a remote town and saving jobs in a factory,” says Mirolo. “In fact, only 35% of those flights take place for business reasons.”

In France, business aviation accounts for 10% of flight movements. T&E’s study highlighted France as one of the most active countries in Europe for business aviation, along with the UK.

T&E supports the French government’s approach. “In sustainable aviation fuels (SAF), for instance, French mandates have given an impulse to the in-discussion European ReFuelEU regulation,” says Mirolo. “Acting fast at a European level is an oxymoron. Those governments feeling like being on the frontline must devise national measures. Their application could then be widened.”

Typically, if additional taxes apply to business aviation in France, they could eventually spread across the EU. Taxes may be useful to reduce the cost gap between fossil fuels and SAF, as well as funding research and technology, Mirolo stresses.

He has some advice for business aircraft manufacturers, such as Dassault and Daher. “We tell the business aviation industry, make yourself useful and be part of a solution,” he says. “That falls under the concept of a society where everyone plays its part.”

“We are not against aircraft but rather against the energy they use,” he goes on. “From 2030, business aircraft using fossil fuels should be banned on routes under 1,000 km. That would be a strong political signal.”

Pressure for greater use of SAF could come from business aviation users. They could be the starting point for requiring 100% SAF to be used in engines, up from the current limit of 50%, Mirolo suggests.

Moreover, business aircraft may benefit from breakthrough technologies first. Thanks to their relatively light weight and more modest needs in terms of range, they could more easily use electric and hydrogen power. “When you know the current limits of electric and hydrogen power, business aircraft appear perfectly suited for those technologies to start with,” Mirolo says. “A 500-800 km range would be fine for most business aircraft flights.”

That is at least a point of agreement between T&E and EBAA France. Business aircraft have the right size to test new technologies, Aguettant agrees.

Daher, in partnership with Airbus, and Safran under the EcoPulse demonstration program, has started flying a modified TBM 900 single-engine turboprop aimed at testing a hybrid-electric, distributed-propulsion system.