EasyJet Slams Air Tax Calls

by Jason Gorringe, Tax-News.com, London

19 October 2006

A report launched on Tuesday by the University of Oxford has suggested that the UK Government’s policies on aviation "fly in the face of policies on climate change", and has called for an increase in air passenger duty.

According to the Environmental Change Institute report, by 2050, carbon dioxide emissions from UK aviation could be four to ten times higher than 1990 levels, representing up to two thirds of the government’s total emission target for that year.

The report, entitled ‘Predict and Decide’, was commissioned by the government-funded UK Energy Research Centre, and concludes that politicians are going to have to radically alter their strategy in order to cut emissions sufficiently, by looking at ways of curbing air travel overall.

Dr Sally Cairns, one of the report’s authors from the Transport Research Laboratory, stated that:

"If the government wants to reduce aviation growth, it has the power to act now. Raising air passenger duty would help to counter reductions in fares – which are estimated to have been responsible for at least 40 per cent of recent aviation growth."

Responding to the report, budget airline easyJet called for the findings to be put in to perspective and for practical solutions to be implemented to deal with the impact of aviation on the environment.

"It is clear airlines still have their part to play in safeguarding the environment, but it is important to put this in to perspective - the European Commission’s own calculations confirm that aviation accounts for just 3% of CO2 emissions in Europe," the airline announced in a statement.

It continued:

"easyJet takes its environmental responsibilities very seriously and as a result the airline is one of the world’s most environmentally-efficient airlines. easyJet flies brand new, quiet and fuel efficient aircraft using the latest technology. With its point to point network and some of the highest load factors in the industry, no resources are wasted and every aspect of the business is efficient."

"Calling for greater taxation on air travel is sloppy thinking and risks damaging the European economy as a whole (3.1 million jobs and EUR221bn of GDP in the EU-15 are dependent upon aviation, accounting for 8% of Europe’s GDP). Aviation is also a key driver for integration with the new Member States and growth under the EU’s Lisbon Agenda."

"Taxation is a blunt instrument that will only put more money into the pockets of Governments, whilst discriminating against the poorest in society, who until recently were priced out of the sky. Crucially, and most importantly, it does not benefit the environment."

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