Watson Farley & Williams (‘WFW’) represented AICALF (Associazione Italiana Compagnie Aeree Low Fares) and the airlines EasyJet, Ryanair and Volotea before the Council of State, obtaining the cancellation of the €2.5 municipal surcharge on boarding fees for those departing from Venice’s ‘Marco Polo’ airport.
The tax, previously assessed favourably by the Regional Administrative Court of Veneto (“TAR Veneto”), was introduced in April 2023 to help fund Venice’s municipal budget.
The Council of State upheld WFW’s arguments and censured the lack of motivate behind the introduction of the surcharge, as the Municipality of Venice hadn’t adequately assessed alternative measures among those provided by law to cover its deficit. The judge also pointed out that, in the majority of cases, passengers affected by the surtax were not Venetian residents so did not derive any benefit to them from the tax. Finally, the tax impacted passengers of low-cost airlines disproportionately in relation to the fares applied.
The WFW Italy Public Law, Regulatory and Competition team that advised Aicalf, EasyJet, Ryanair and Volotea in court was led by Partner Giannalberto Mazzei.
Giannalberto commented: “This ruling represents an important milestone in the Italian legal system, as it clarifies that the introduction of surcharges on boarding fees must pass the test of constitutional reasonableness. It is therefore clear that only those who benefit from these measures should pay the surcharge”.
