Aviation industry angry over Budget APD inaction
23.04.09
The aviation industry has reacted with anger after the Government failed to scrap plans for a rise in Air Passenger Duty (APD) in the Budget today. Chancellor Alistair Darling made no reference to the travel tax, which is due to increase in November and again in 2010. Airlines, agents, ABTA and other industry associations had urged the Chancellor to scrap the tax altogether, or at least cancel the increases.
Mark Tanzer, ABTA chief executive, said: ‘This unfair tax already costs air travellers from the UK £2 billion and covers its environmental costs. This holiday tax represents a heavy and growing burden on families at a time when they are being forced to reconsider whether they can afford to take a well-earned break. As one of the few successful sectors in the UK economy, the Government has targeted the travel industry to plunder, without regard to the damaging impact to jobs.’
‘The rise in APD to destinations such as the Caribbean, dependent on tourism, will be as much as 87%, equating to a tax bill of £600 for a family of four travelling to the Caribbean in premium economy in 2010 compared with today’s £160.‘
Toby Nicol, easyJet’s communications director said: ‘The Chancellor of the Exchequer has missed the opportunity to give air passengers a much-deserved shot in the arm by refusing to ditch his planned £1 billion raid on the airline industry over the next two years.'
‘Last year the Chancellor bottled the planned reform of Air Passenger Duty which would have made it a fairer, greener tax and instead simply announced a huge tax raid on hard-working families while continuing to exempt private jets and cargo planes. In today’s Budget he should have waived the planned increases in order to help an industry which will be at the forefront of dragging the economy out of recession, but he bottled that as well.’
Mike Rutter, Flybe’s chief commercial officer, said: ‘As a former transport minister, Mr Darling knows that aviation will play its part in dragging the country out of recession. The Government’s own figures show that aviation already pays its own way. By slapping another tax on a British success story like aviation, the Chancellor runs the risk of endangering a recovery that could be led by aviation.’
Thomson Holidays managing director Dermot Blast land said: ‘We find it outrageous that despite clear briefings explaining why this tax is unfair and unjust, the Government continues to carry on regardless. Many holidaymakers will not now be able to afford a few inches of extra legroom on their holiday flight.'
Co-operative Travel MD Mike Green acre said: ‘It is scandalous that APD has gone from zero to its existing level in such a short period of time. Whilst we accept that the industry has to pay its share of tax on fuel, the impact of this draconian increase could be catastrophic.’
However, John Mean, chief executive of Advantage Travel Centres, said the industry should not give up its fight. He said:
‘Just because he hasn't mentioned it in the Budget doesn't mean we should give up. We need to keep the momentum going.'
Add to:
del.icio.us
| Digg
it | Newsvine
| NowPublic
| Reddit
To book
hotel gatwick airport or
park gatwick airport at the lowest price, click on these
links to two great gatwick parking and gatwick
hotels price comparison pages.
