easyJet Fights Proposed UK Tax on Passengers

23rd Sep 2005

easyJet has resisted the Civil Aviation Authotity’s (CAA) calls for a £1 levy to be imposed on UK passengers in a bid to create a travel protection scheme.
The CAA has today revealed that coping with repatriations and refunds resulting from a major tour operator failure would cost around £250 million. The CAA proposes paying for this fund through a £1 levy per passenger on all UK originating international flights.

The no-frills carrier has condemned the CAA’s plans to make scheduled airlines pay for the failings of tour operators.

EasyJet claim that penalising airlines and their passengers by imposing a blanket levy regardless of the fare paid or the financial viability of the carrier flown is a highly burdensome and costly approach to the financial protection of air travellers.

Nevertheless, easyJet has always supported the CAA’s objective of plugging the gap in consumer financial protection.

easyJet believes that, instead of introducing an old-fashioned tax to fund CAA coffers and bail out the weakest players, the UK Government should opt for alternatives that provide a win-win situation for consumers, airlines and the Government together.


p>Toby Nicol, easyJet Communications Director, commented: “We agree that consumers should be protected against the financial failure of airlines - but we disagree violently with the solution proposed by the CAA. Flat-rate charges discriminate against those airlines offering the lowest fares and mean that short-haul passengers would be cross-subsidising the cost of repatriating long-haul passengers. I don’t see how this is to the benefit of easyJet customers and remain convinced that the CAA’s only real incentive to get scheduled airlines into its scheme is in order for our passengers to fund it. easyJet will continue to make representations to the UK Government and champion consumer interests.”


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