APD refund charges unfair
31.03.09
Some passengers claiming back Air Passenger Duty (APD) on unused flights are being hit by administration charges up to four times the value of the tax, according to Which? Holiday magazine. It says that a number of major airlines, including BA and Ryanair, charge fees for those reclaiming the tax, meaning passengers are often worse off if they make a claim. The airlines are thought to be making large sums in unclaimed duty.
APD - effectively an airport departure tax - is currently £10 on short-haul economy flights and can rise to £80 depending on flight length and class of seat. But passengers claiming back £10 air taxes on unused flights are being asked to pay administration fees ranging from £15 to £40, with the fee charged either for each customer or for the entire transaction. easyJet was the only airline out of eight surveyed that did not charge a fee to claim back air passenger duty.
Airlines insist the practice of charging to recoup the duty is right. A BA spokesman said: 'We believe the administration fees are fair when a customer cancels their flight.' However, James Fremantle, from watchdog the Air Transport Users Council, said: 'What they charge is not a reasonable amount. We have referred this to the Office of Fair Trading.' Which? Holiday editor Lorna Cowan added: 'We want to see all airlines either charge an appropriate fee for reclaiming the APD on unused flights, or, like easyJet, charge nothing at all.'
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