ANZ passengers forced to pay tax on airmiles upgrades
14.11.11
Air New Zealand passengers who upgrade to business class for flights from Heathrow using airmiles will have to pay air passenger duty too, the Herald reports. From December 5, passengers flying from Heathrow Airport will be hit by the tax, which applies to all passengers upgrading their long-haul seat to business class or premium economy flights.
In a note sent to Airpoints member, Air New Zealand warned customers that the tax would affect any of its passengers who used their points to upgrade to better seats. The airline said: ‘While we do everything we can to offer the best-value fares, many countries have Government or airport taxes that we need to pass on to our customers. In this instance, Her Majesty's Revenue & Customs in the UK levies an additional air passenger duty for passengers travelling in Premium classes. This air passenger duty has implications under our Airpoints upgrade programme. So if you use Airpoints dollars to upgrade we'll need to pass on the cost of this additional air passenger duty.’
Passengers flying to Auckland will pay a flat rate of £85 regardless of whether they are upgrading to premium economy or business class.
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