Low-cost carrier easyJet has warned that proposed hikes to air passenger duty will lead to a fall of three million British air passengers, and reduce tourist spending by £475m a year. The low-cost carrier also said the APD pricing structure would result in a shift from short to long-haul travel, which in term would harm the environment.
British chancellor of the exchequer George Osborne has frozen Air Passenger Duty at its present level. Announcing the 2011 Budget, Osborne told the House of Commons that there will be no increase in the APD until at least 2012.
The International Air Transport Association (IATA) welcomed the UK Chancellor of the Exchequer’s decision not to increase the Air Passenger Duty (APD), announced in his Budget Statement today
On the eve of the UK Budget, Jamaican minister for tourism, Edmund Bartlett, has presented his final case to the UK government for a reduction or redesign to the current APD system. Speaking in the UK earlier, Bartlett said: “In the knowledge that this week is a very important Budget for the UK and its Government, I would ask that they do not lose site of the APD problem that Caribbean destinations such as Jamaica are currently experiencing.”
The US-based Business Travel Coalition has issued a last-minute plea to British chancellor George Osborne to consider the impact of further increases in Air Passenger Duty. Osborne is due to present the annual budget to parliament on Wednesday, with rumours growing further increases could be included.
Air passengers flying out of Britain could face another hike in Air Passenger Duty in next week’s budget, according to a leaked report. The British government is planning its fourth APD hike in three years, and is also planning a new tax on private jets as it grapples to raise money to plug the country’s budget deficit.
Hitched.co.uk, the UK’s leading wedding website, has published the results of a poll conducted on its site last week which show that over two-thirds of respondents did not think the rise in tax would affect their honeymoon plans.
Aviation passengers departing from the United Kingdom are set to see the cost of their tickets rise, as the government increases air passenger duty for the second successive year. The tax on some flights will rise by up to 55 per cent from today as part of the changes, which will generate an estimated £2.3 billion for the Treasury.
easyJet, the UK’s largest airline, today issues a reminder that Air Passenger Duty (APD) is set to rise again. The rise, to £12 on flights within Europe, means the tax will have increased by 140% since 2007.