easyJet has welcomed the Chancellor’s decision to reform the structure of Air Passenger
Duty to tax aircraft not passengers from 2009.The company issued the following comment:

“This is the right decision and we
look forward to working with the government on a new structure that properly
reflects the pollution levels of different aircraft types and the distance flown by
those aircraft.

“While it is right that aviation should be taxed more intelligently, easyJet cautions
that this must not be used as a Trojan Horse to increase the overall of levels of
tax from airline passengers. People passing through UK airports already pay £2.4
billion in Air Passenger Duty.

“At the current levels, easyJet already covers its full carbon cost (known as the
“social cost of carbon”) more than four times over.”

Andy Harrison, easyJet Chief Executive, said:

          “We have long argued that the current structure of APD is in need of reform. A tax
that penalises families but excludes private jets; and charges passengers
travelling to Marrakech the same as those travelling to Melbourne, is just plain
wrong. A structure that taxes a passenger in the newest, cleanest aircraft the
same as someone in an old gas-guzzler cannot be allowed to continue.

          “It is right to tax emissions, not passengers. That means reflecting a combination
of aircraft type and distance flown. But the reform should not be used as an
excuse to further increase the burden of tax on passengers - easyJet, for example,
already covers its carbon costs more than four times over.

          “We think it is a good step in the right direction that could be up and running
before the November 2009 date indicated by the Chancellor today.”
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