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Jun

22

Jet2.Com Calls For Halt To Further Rises In Air Passenger Duty

Filed Under (Belfast airport, Blackpool airport, East Midlands airport, Glasgow airport, Leeds Bradford airport, Newcastle airport) by Paula Garrett on 22-06-2011

Jet2.com has launched a scathing attack on the coalition’s recently proposed reform of Air Passenger Duty (APD) which could see the tax rise significantly in 2012.

Following on from BAA’s calls for Scotland to devolve responsibility for its own aviation tax in order to promote regional business travel and tourism, Jet2.com has highlighted how hard regional airports and their passengers, particularly those in the north, will be hit, should these rises come to fruition.

Ian Doubtfire, managing director of Jet2.com said, “The Government here already raises £2 billion a year from passengers and this is projected to rise to a staggering £3.6 billion in the future. Currently the UK is the only country in Europe to have such punitive taxes for air travel, with other countries either reducing or abolishing aviation taxes. We offer customers the opportunity to have a great flight experience at low fares from their local airport but the government seems hell bent on hitting people’s holidays in what is already a very tough time economically. We find it impossible to reconcile the coalition’s vision for an economic environment, in which the private sector can thrive, with its current proposals to increase APD again from 2012.”

Jet2.com supports the case that Northern Ireland and Scotland, in particular, will be hit severely by these huge increases, with an estimated loss in passenger spend alone of over £130 million in Scotland. The airline is firmly of the opinion that the Scottish Government is best placed to determine the balance between APD and the economic benefits of aviation growth and therefore fully supports the devolution of the matter to the Scottish Government. Also devolving the APD issue in Northern Ireland would facilitate a level playing field between the airports of Northern Ireland and the Republic of Ireland.

Ian Doubtfire, concluded, “When the Government came into power, it announced that it wanted to develop regional airports. We support regional airports in calling for lower rates of APD to enable them to develop new business and make tourism more attractive – both outbound and inbound. We would strongly recommend that the Government takes a more considered and practical approach to this stated vision, given the current economic environment; one which doesn’t discourage development. In our industry flights can be made available for customers to book, as far in advance as eighteen months. This allows travellers to get the best prices and plan their trips accordingly. The current decision to inflict such outrageous taxes so imminently shows little understanding of how the airline industry operates and its planning pressures. In the very least, we believe any changes shouldn’t happen until November 2012.

“In addition the Emissions Trading Scheme will kick in from 1 January 2012, therefore it is logical that APD, which is billed as ‘a green tax’, should be reduced on current rates and should definitely not be increased in the next budget.”

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As the Treasury’s consultation on the reform of Air Passenger Duty (APD) enters its final week – ends on 17 June – ABTA is calling on the government to rethink the levels and structure of the tax which is the highest in the world.

APD is based on distance travelled and at present a family of four flying to Europe will pay £48 in APD, to the USA the tax increases to £240, to Australia the tax increases to £340 – all based on the economy rate – however, the cost of the tax is set to rise again next April by twice the cost of inflation.

Only five European countries impose some form of aviation tax with the UK’s level higher than anywhere else in the world. Denmark, Norway, Malta and Holland have all scrapped similar taxes as the revenue raised was outweighed by the damage caused to their economies. Ireland has pledged to follow suit shortly.

ABTA is part of the Fair Tax on Flying www.facebook.com/afairtaxonflying alliance that has united the travel industry to raise awareness of the high levels and illogical structure of APD, which is damaging UK travel and tourism and adding an additional tax burden to holidaymakers and business travellers at a time when fuel prices are reaching record levels.

Mark Tanzer, ABTA Chief Executive, said: “It is vital that the Government understands the damaging impact that APD is having on the tourism industry in the UK. We already pay the highest levels of aviation tax in the world, and if the Government goes ahead with its double-inflationary increase and levies an ETS tax on top of this in 2012, we will see another eye-watering increase in the tax burden on the industry and on holidaymakers and business travellers flying in and out of the UK. The industry is willing to pay its way, but this clearly puts us at a competitive disadvantage when compared with our European neighbours and punishes the travelling public unfairly.”

ABTA encourages all of its Members and any others who feel strongly to make their own submissions to the treasury at http://www.hm-treasury.gov.uk/2011budget_airpassenger.htm

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