Flybe criticise planned APD changes
21.03.08
Flybe says that regional airlines will be unfairly hit by government plans to replace air passenger duty (APD) with a tax on aircraft. They say the new Plane Duty will mean small regional aircraft flying short routes will be taxed as though they are heavier and flying long-haul.
The government proposes to tax aircraft according to their maximum take-off weight and distance travelled. Aircraft would be put into different bands according to the weight and distance, and taxed at a rate for the band. Three distance bands are proposed: one for the European Economic Area, one for other destinations within 3,000 miles from London and a third for destinations more than 3,000 miles from London.
Mike Rutter, chief commercial officer at Flybe, said such categories would have a disproportionate impact on regional carriers that fly short distances, such as the Birmingham - Belfast route. Under the government’s proposals, the flight would be taxed for the same distance as one from Dublin to Turkey.
He said he had no objection to aviation paying environmental taxes, but he called on the distance bands to be reformed, such as up to 500 miles, and 500 to 1000 miles. Mr Rutter said: ‘What the Treasury are proposing will disproportionately penalise regional aviation. It could stop the growth of regional aviation and hit local economies that require regional aviation to do business.'
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