The Airport Operators Association (AOA) has responded the the Chancellor’s announcement to reduce Air Passenger Duty (APD) for direct long-haul flights from Northern Ireland.

Darren Caplan the Chief Executive AOA said: “The Chancellor is recognising something UK airports have been saying for a long time. In these tough economic times, high levels of Air Passenger Duty are pricing people out of flying, whether business people, holidaymakers and travellers visiting friends and family. It is also a disincentive for anyone wishing to come to the UK, whether business passengers or inbound tourists.

“The Airport Operators Association supports the Fair Tax on Flying coalition’s campaign, urging the Government to reduce the current shockingly high levels of APD in every part of the UK, to ensure UK airports can play their essential role in the economic recovery. These reductions should take place at the earliest possible opportunity.”

A campaign to persuade the Chancellor to drop planned hikes in the tax levied on all flights leaving the UK was launched last Monday at airports across the country as a new poll is released showing 3 out of 4 people think that Air Passenger Duty (APD) should not go up in the next Budget. Of those saying APD should not go up 49 per cent said APD should be reduced. Only 6 per cent said APD should be increased.

The Chancellor announced in this year’s Budget that APD will rise by double inflation in 2012.

The ‘Hands off our Holiday’ campaign, backed by the Airport Operators Association (AOA), Board of Airline Representatives in the UK (BAR-UK), and the British Air Transport Association (BATA) is urging people to email their MP via the website www.handsoffourholiday.com and to tweet their support for the hikes to be abandoned using the hashtag #handsoffourhols.

The poll, carried out by Opinium Research for the Hands off our Holiday campaign also shows that nearly 4 out of 5 people were unaware of the plans to further increase the tax by double inflation.

Commenting on the campaign, Darren Caplan, Chief Executive of the AOA, said: “Our message to the Chancellor is that enough is enough. Air Passenger Duty has already gone up by 325% on long haul flights and 140% on short haul flights in the last five years. Family finances are under great pressure at the moment and most people save hard all year for their holiday. Working families deserve a break.”

Mike Carrivick, Chief Executive of BAR-UK, added: “The UK already has the highest rate of flight tax in the world. Why should families be discriminated against for wanting to fly off on a hard-earned break once a year?”

Simon Buck, Chief Executive of BATA said: “The government already takes nearly £3bn in tax from passengers. This is more than the tax on the banking industry. Most people simply aren’t aware how much flight tax they pay. The government should come clean about this stealth tax and drop the hikes planned for next year.”

Delegates from airports across the UK met in Aberdeen last week for the annual liaison meeting of airport consultative committees hosted this year by Aberdeen Airport.

The meeting discussed a full agenda, with particular emphasis on three major consultations: the Treasury review of Air Passenger Duty (APD); the Department for Transport consultation on a sustainable framework for UK aviation; and the Civil Aviation Authority’s proposals on passenger rights and their reform of complaints’ handling.

Delegates were concerned, on the review of APD, that the introduction of the European Emissions’ Trading Scheme in 2012 would lead to double taxation of passenger flights and agreed to urge government to consider off-setting income generated by the ETS to allow for a reduction of APD rather than the current proposed increase. They expressed concern at the continuing impact of APD on domestic flights within the UK, particularly where viable alternative surface transport was not available and suggested that the rate of APD should be halved for domestic point to point flights. They also felt that greater clarification was required on the definition of ‘business jets’. It appeared that this phrase was now being interpreted as including such parts of aviation as the transfer of offshore workers by helicopter, which they felt should continue to be exempt from APD.

Delegates generally welcomed the proposals in the framework review and the CAA’s consultation that put the passenger at the centre of aviation policy and look forward to working with the DfT and CAA on the development of new guidelines to clarify ways in which airport consultative committees can ensure enhanced representation of passenger interests. They agreed to express again the need for government to find some way to ensure an acceptable level of access to the main London airports for UK regional flights.

A recent survey of 154 MPs has shown that more than two thirds did not know about the double taxation that airport passengers are facing in 2012.

The survey, conducted by ComRes and Airport Operators Association (AOA), found that majority of the MPs were unfamiliar with the UK aviation industry’s planned entry into the EU Emissions Trading scheme (EU ETS) in 2012. This additional tax, coupled with a substantial increase in Air Passenger Duty (APD) next year, will mean that air passengers face double taxation on flights.

Of those MPs who did know about the additional tax caused by the introduction of the EU ETS, 63% believe that APD should be reduced or abolished.

Darren Caplan, Chief Executive of the Airport Operators Association, said: “The ComRes / AOA survey shows that the majority of MPs do not know that air passengers will face onerous double taxation on flights from 2012. It is shocking that our policy-makers are unaware that holidaymakers and business people will be paying a new cost on flying – the EU Emissions Trading Scheme – as well as even more APD, already the highest in the world.

“Of those MPs who do actually know what is going on, more than 60% support the reduction or scrapping of APD to encourage economic growth by ensuring that passengers do not face a further tax rise in what are already tough economic times for everybody.”

Andrew Hawkins, Chairman of ComRes added: “Fuel duty in one form or another has long proved a toxic issue politically and the impact of the ETS should not be ignored by politicians. It is notable that of MPs who are aware of it, the majority view is to ameliorate its impact by varying Air Passenger Duty. The ETS issue has all the hallmarks of a powerfully dangerous political mix.”

Although it was looking like the liquids in hand luggage rules were going to be relaxed last week, the European Commission has announced a last-minute decision to defer the relaxation of the ban.

It is understood that the decision was made to avoid confusion and follows strong concerns voiced by the Association of European Airlines (AEA).

Ulrich Schulte- Strathaus, AEA Secretary General said, “We fully support the relaxation of liquids restrictions, but we need a harmonised approach, not a fragmented patchwork of national policies. Member States must deliver on their commitments and implement pro-consumer decisions in a unified way.”

Some Member States had decided to maintain the current restrictions and it was also unclear how the USA would react to the new European rules. Without US clarification, passengers flying from Europe to the USA could have faced further screening or had their liquids confiscated.

“We repeatedly voiced concerns about the US situation, but we were assured it would be resolved ahead of the 29 April deadline. This should not have been a last-minute issue,” says Mr Schulte-Strathaus.

“The USA and Europe must communicate openly and as equals, especially given the international nature of the airline industry. Regulators need to work with the industry to deliver safe, efficient and easy to understand procedures for airline passengers.”

The changes were the first step of an agreed phased relaxation of the rules which would have allowed passengers connecting through European airports to carry duty-free liquids, bought at non-European airports, in their hand luggage.

Despite a legal bid by BAA that resulted in the UK Competition Commission having to reconsider its decision about BAA selling its airports, the outcome has remained the same.

The Competition Commission took into consideration possibilities that market conditions had changed since 2009, however, the airport operator is being forced to go ahead with selling Stansted Airport and either Glasgow or Edinburgh as it was originally instructed to do.

The budget declared that the controversial Air Passenger Duty tax (APD) will not be increased, and instead the Government has put on hold any further rises until April 2012.

During the budget Chancellor George Osborne said that whilst holding any rises on APD, he would in fact impose a tax on private jets flying out of the UK. Private jets have previously avoided the APD.

Mr Osborne also confirmed that investigations into a tax per plane have been shelved as it is illegal under international law. The controversial APD tax has meant that travellers have seen steep increases in their flight costs, as much as £170 per passenger, for those flying on the longest journeys, and in premium cabins, as the tax currently is based upon the distance travelled between capital cities.

The travel industry has welcomed the budget announcement yet many industry heads have expressed concern that come April next year the increase could be double.

2010 wasn’t a particularly good year for UK airports, first we had the disruption caused by snow at the start of the year, followed by the volcanic ash cloud, strike action in May and then heavy snow at the end of the year.

All these factors contributed to a 3.4 % fall in passenger numbers when compared with 2009 – UK airports were down by a total of 7.4 million passengers last year. In fact the past three years have seen consecutive falls in passenger numbers and, according to figures just released by the Civil Aviation Authority (CAA), passengers numbers have now fallen to below those in 2004!

Commenting on the numbers, Iain Osborne, CAA Director of Regulatory Policy said, “The UK’s fragile recovery is not yet driving increases in passenger numbers. Although the decline in business travel levelled out last year, leisure travel continued to fall in 2010. Without the year’s exceptional events, with snow, strikes and volcanic ash all affecting aviation, passenger numbers overall would likely have been level with 2009.

“Although airports in the South East of England were less affected, airports in the rest of the UK saw significant falls in passenger numbers, with some now facing financial challenges as a result. Airlines have in the main coped well with unprecedented drops in passenger numbers, increasing load factors and sustaining margins where possible.”

Regional airports were proportionately more affected than London airports.

Of the London Airports, Stansted was worst affected with a seven percent drop in passenger numbers, Luton a four percent drop and Gatwick a three percent drop, London City Airport saw a small decline of 0.6% while Heathrow a small 0.2% decline.

Regional airports saw a combined drop of five percent, with Manchester, the largest regional airport, witnessing a five percent fall in passenger numbers.

Following Manchester Airport’s warning over the use of Chinese lanterns, the UK Civil Aviation Authority (CAA) is calling for all organizers of Chinese lantern releases to register their event in advance.

Chinese lanterns can pose a danger to aircraft and can be sucked into engines or fall as debris on runways.

Organisers of events that are ten miles or less from any aerodrome, or where significant numbers of lanterns are being released at any one time, need to be aware of the potential risks to aircraft, and are urged to refer to the CAA’s online guidance and then, if necessary, contact either the CAA or local aerodrome with details of the event.

Guidance on sky lanterns is contained in the updated version of Civil Aviation Publication 736, which also provides guidance on toy balloon releases, firework displays and the operation of lasers and searchlights.

The UK Civil Aviation Authority (CAA), the UK’s specialist aviation regulator, is conduction a two-week online survey on the travelling public’s experiences during the disruption caused to flights in November and December 2010.

The survey aims to help the CAA gain a better understanding of passengers’ views about how airports, airlines and other companies operating at UK airports, met, or failed to meet, their expectations. For instance, the CAA is interested in finding out how well passengers were kept informed about the disruption and whether people were told about their rights to assistance from airlines.

The survey can be accessed here: www.caa.co.uk/snowsurvey

The CAA is keen to hear from as many people who experienced disruption as possible to try and build the best possible picture of what worked well and what did not, so we can work with industry to improve the situation in case of future disruptions.

The CAA is also acting as an independent observer on the enquiry panel put in place by BAA to review Heathrow’s performance and establish the lessons to be learned following December’s severe weather.