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Author Topic: HQ Taxes rule  (Read 498 times)

Offline Julien

  • Members
  • Posts: 535
HQ Taxes rule
« on: June 19, 2014, 02:00:34 PM »
Hello all,

Something I do not catch...
This taxes rule based on HQ location is a non sense and actually forbidden in the real EU.
Start with a base at Dublin where taxes are 10% instead of 30/33% in most of EU countries, keep there 15 ATR aircrafts to maintain the base, and open bases thru Europe with no aircraft number limitations... it creates a distorsion of competition, leaving a benefit way more important for the Irish based than the other countries based competitor.

I remind major airlines such as Easyjet or Ryanair have been forced to base in countries where planes are stationed.
If Ryanair wants to pay Irish taxes and Irish salaries for a flight between, lets say, Dublin and Girona, the aircraft has to be Dublin based.

I think this rule should be changed otherwise in the games Dublin, Shannon and other Irish airports will host 80% of European airlines...

Offline Sanabas

  • Members
  • Posts: 2161
Re: HQ Taxes rule
« Reply #1 on: June 19, 2014, 03:45:23 PM »
Hello all,

Something I do not catch...
This taxes rule based on HQ location is a non sense and actually forbidden in the real EU.
Start with a base at Dublin where taxes are 10% instead of 30/33% in most of EU countries, keep there 15 ATR aircrafts to maintain the base, and open bases thru Europe with no aircraft number limitations...

There are number limitations. The benefits of your biggest airport being your HQ (e.g. able to have more planes there, able to grow much faster in the first 18 months) outweighs the benefit of cheaper taxes.

[/quote]I think this rule should be changed otherwise in the games Dublin, Shannon and other Irish airports will host 80% of European airlines...
[/quote]

Hasn't happened yet. Doubt it ever will. Might be slightly useful for a smaller airline wanting multiple smaller bases to start where the taxes are lowest though.

 

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