PARIS (Reuters) – Motorway concession companies and air sector operators are increasing their criticism of the new tax unveiled on Wednesday by the government on long-distance transport infrastructure, warning of an impact on their profits and recourse to justice.

Intended to finance “the future plan for transport”, this tax will mainly be imposed on the turnover of large motorway concessions, owned by the Eiffage and Vinci groups, and large airports, owned by ADP. It should generate 600 million euros per year for the State.

On the motorway side, Eiffage estimated on Thursday that based on its accounts closed at the end of 2022, the government tax project would have resulted in a reduction of around 117 million euros in its consolidated current operating income (ROC).

Vinci, for its part, estimated the impact of the tax at 260 million euros.

The two groups warned that they intended to use “all avenues of appeal” to contest the proposed tax, contrary to the concessions contract which binds them with the State.

Especially since Vinci and Eiffage are also in disagreement with the government over the possibility of passing this tax on toll prices.

“Toll rates are set by us,” assured Wednesday the Minister of the Economy, Bruno Le Maire, based on a decision of the Council of State.

But for the general director of Vinci Autoroutes, Pierre Coppey, “an increase in taxes inevitably means an increase in toll rates”. The manager relies on article 32 of the concession contract with the State which provides for compensation measures, particularly tariffs, in the event of a new tax.

“NOT GOOD NEWS”

As for the airline sector, the tax is criticized by ADP but also by Air France, which is worried about an increase in its airport fees.

ADP in fact warned on Wednesday that it would pass on 75% of the financial burden linked to the tax on royalty rates, which will be gradually increased over a period of two to three years.

The remaining cost for ADP is estimated at around 90 million euros on Ebitda for 2024.

The new tax is “not good news at all” for Air France, the airline’s chief executive, Anne Rigail, said on Thursday.

“What poses a problem to us in this bill is that only the large airports on which Air France but also all French companies mainly operate will be concerned, whereas an airport like Beauvais on which a foreign low-cost [Ryanair] operates will not be affected,” she explained on RTL.

“So for us, this induces a new distortion of competition which will hurt us,” she added.

On the Paris Stock Exchange, Air France-KLM shares fell more than 3.5% in the morning on Thursday. ADP lost 1.5%, Vinci 1% and Eiffage 0.4%.

(Written by Blandine Hénault, edited by Jean-Stéphane Brosse)

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