Air Passengers Threaten To Desert UK Airports Over APD Hikes

by Robin Pilgrim, LawAndTax-News.com, London

04 June 2009

The results of a survey released on June 2 suggest that air passengers travelling long haul from regional airports in the UK could desert British airlines and the major UK airports if the government fails to take action over Air Passenger Duty (APD).

An Ipsos MORI on-line poll, commissioned by the British Airline Pilots' Association (BALPA), found that (among those who expressed a preference) 90% of adults aged 16 to 64 would prefer to fly to Amsterdam to connect with their long haul flight, avoiding APD, rather than Heathrow where a tax of up to GBP85 (USD140) per passenger applies.

Rather than reduce APD, the government intends to more than double this tax at British airports over the next 18 months.

"The results of our poll are extremely worrying," said Jim McAuslan, General Secretary of the BALPA, who added:

"At a time when the worldwide aviation industry is suffering the UK Chancellor is going to suffocate his very own industry. This could only be dreamt up in the UK; the Dutch have recently scrapped their tax on passenger flights to try to attract more business from neighbouring countries and good old Britain is happy to oblige. This is economic madness."

At the same time as Amsterdam was scrapping its duties, the British government was increasing its tax on air passengers, he said.

A family of four travelling economy class to Disneyland in Florida for half term week 2011 will pay GBP240 (USD398) in taxes; to the Caribbean for a Christmas in 2010 it will be GBP300 (USD497) and for the family to visit relatives in Australia that Christmas it will be GBP340 (USD563) before they even board the aircraft.

"This is a triple whammy," Mr McAuslan continued, further stating:

"The increases in APD will hurt hard working families who have toiled for a holiday and it will hurt them irrespective of their income. This flat rate regressive tax is a poll tax of the skies."

"It will hit our airlines who have to pay their way and unlike other forms of transport don't draw on any public funds, and it will hurt British jobs and the staff who are already facing a very difficult time. This is a blow for the UK's economy when it needs a boost," he concluded.

The BALPA is now calling on all parts of the industry to work together to draw the public's attention to this stealth tax and to persuade the government to scrap the planned increases due to come in on November 1 and allow UK aviation to compete on a level playing field.

Recommended