Air France-KLM cuts last direct Manila-EU flight

MANILA, Philippines—The Philippines has lost the last direct flight to Europe with a decision by Air France-KLM to stop flying the route because of high taxes levied by the Philippine government.

The airline’s general manager for the South China Sea region, Cees Ursem, says that the taxes are a big burden. They include the three percent common carriers tax, the 2.5-percent gross billings tax on cargo and passenger revenues originating in the country plus a 12 percent value-added tax on crew accommodations.

He said Monday that a new flight schedule includes a stopover in Taipei, where no such taxes are required. The change will reduce seat capacity for the Manila-based passengers.

The high taxes prompted all other foreign carriers to cut nonstop flights to Europe.