Air Berlin plans to reduce the size of its fleet in 2011 to improve efficiencies to offset the impact on revenue of the tax on air traffic introduced by the German government from 2011. The airline expects the tax to lower revenue from €160 million to €170 million next year as the tax will be impossible to pass onto passengers, says chief executive Joachim Hunold: “In my opinion, the fierce competition on some flight routes will make it impossible to pass on the air travel tax to the passengers in its entirety. Therefore we will reduce our capacity by 5%

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