Thread: Holiday firms warn over 55% Air Passenger Duty rise

from: BBC News - Holiday firms warn over 55% Air Passenger Duty rise

Air taxes are to rise by up to 55% on Monday, making some trips unaffordable, the travel industry has warned.
A family of four flying in economy to Australia will now pay £340 in total taxes - an extra £120.
The same family to the US will pay 33% more Air Passenger Duty (APD), up £60 to £240. APD on premium class fares is double that of economy.
The government said the rises were set by the previous Labour administration, and reform was being considered.


'Huge driver'


Sir Richard Branson's airline Virgin Atlantic said the rise would put annual family holidays out of reach for many.
Virgin Atlantic chief commercial officer Julie Southern told the BBC: "Air Passenger Duty has risen three times in recent years, and what we're saying very clearly to the government is enough's enough.
"This is not just about people travelling on holiday, this will also affect tourists coming to the UK who will pay this tax on departure.





"We know that tourism is a huge driver of economic growth in the UK, so we really shouldn't be disincentivising people from visiting us."
British Airways chief executive Willie Walsh said the increases would cost BA an extra £100m and put more pressure on ticket prices.
He said: "I think these taxes are a disgrace. I don't think they can be justified at any level.
"My concern around the taxes is the damage that they're doing to the UK economy.
"The government can clearly identify how much money they're raising but I've challenged the Treasury to calculate how much the economy is losing out as a result of making the UK a much more expensive place to do business."
Budget airline Easyjet said APD was a "bad environmental tax" because it did not link the level of tax with emissions.
Chief executive Carolyn McCall said: "The government should reform Air Passenger Duty to make it fairer for the public and to encourage greener behaviour by airlines.
"APD is already higher in the UK than anywhere else in Europe, and UK passengers and the environment would be better off if the tax was shifted from per person to a per plane tax."
Travel industry body Abta is continuing to lobby ministers in protest at the duty rises.
'Complete revamp' The cost of APD for flights under 2,000 miles in economy class will remain at £11, with duty on premium tickets frozen at £22.
For journeys of between 2,001 and 4,000 miles the price will be £60 in economy class and £120 for other seats.
For journeys of between 4,001 and 6,000 miles, the price is £75 in economy and £150 in premium classes. And flights of more than 6,000 miles will cost £85 and £170 respectively.