29 June 2009

Opposition to APD hikes mounts

The Board of Airline Representatives in the UK (BAR UK) has joined industry ranks in opposing planned hikes in Air Passenger Duty.

The body, which represents more than 90 scheduled airlines, is demanding that the government withdraw proposed increases to APD planned for this November and in November 2010.

It described APD as a "stealth tax on the travelling public" which will prove harmful to UK business and act as a tariff barrier against airlines.

APD is "utterly inconsistent" in its application as it imposes disadvantages on some destinations such as the Caribbean having a higher rate of tax than Hawaii, BAR UK argues.

Additionally, long haul visitors are likely to depart through another European country or avoid the UK altogether.

Airlines will have to face an additional financial burden during the most difficult trading period on record and investment in new technologies to reduce carbon emissions could be delayed, BAR UK claims.

Chief executive Mike Carrivick said:"It’s about time the government listened and understood the detrimental effects the new APD levels will impose.

"The new APD regime is effectively a tariff barrier that is purposefully aimed to hit the pockets of the flying public.

"Many will just not be able to afford to travel by air. Moreover, this won’t just be UK residents doing business, going on holiday or visiting friends and family. This will also put a great number of visitors off travelling to the UK - especially from afar.

"The APD charges will simply make it too expensive to visit the UK compared with other parts of the world. The government must recognise that in most cases the inbound leisure passenger has a choice of European airport.

"BAR UK calls for the government to withdraw the proposed increases this year and next and we will continue to lobby government on this matter."

by Phil Davies

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APD Chages

With these planned changes in APD Charges it will be yet another reason not to go ahead with the third runway. There will be such a reductionin passengers travelling and the number if flights needed to carry the reduced loads - there will be no case for a third runway.

By John Ward, Thursday, July 2, 2009
Dutch Ditch APD Today

'We applaud the Dutch Government's action in today dropping their version of APD; a tax that they recognised as having serious knock-on and un-looked for negative effects on their aviation industry and national economy. We again call on the UK Government to follow the Dutch Government's lead 'âœ the planned November increases in APD are a tax too far which will actively hinder the UK's economic recovery. Having been a vociferous opponent of APD since it was raised to &#pound;10 it is great to note the recent surge of opposition to APD from UK aviation and Tourism bodies who are now publicly spelling out the dangers to employment and to the UK's position as a major European hub and business centre. As an island trading nation Aviation is a key component in our commercial and cultural links with the rest of the world; not only cultural but historical links with Commonwealth and other countries. Furthermore, by taxing passengers for mid and long-haul destinations dependent on tourism, the Government is actively penalising the very emerging economies it is pledged to lift from poverty. A recent Caribbean delegation has strongly represented this to the UK this month. Also, as we have repeatedly said, the planned sky-high APD in November will potentially drive international carriers, who also have to pay the tax, away from UK airports to the Continent. UK and visiting travellers on a budget will have the option to take lower tax short haul trips to continental airports and pick up 'APD free' long distance flights from there. Whilst will this save consumers' money, it will add hours to their journeys. On the other side of the coin it will also create more pollution from the necessary return short haul hops making four take offs and landings per trip - possibly more for some trips with stopovers. It will also put the City of London at a disadvantage as long and mid-haul routes are switched to the Continent by cash strapped airlines wishing to avoid the punitive APD rates planned the November. This will potentially deny Heathrow and the City of the many important direct routes vital to their pre-eminent international positions. The Dutch Government has wisely recognized the need to entirely lift their version of the tax in the current world economic climate. APD, is a short term and ill-thought-out part-solution to the Government's major fiscal problems and is a tax that will create long-term damage to the UK economy. The Government should definitely reconsider the wisdom of increasing APD in November if not removing the tax entirely. Chris Cuddy CEO Cheapflights Ltd.

By John Barrington-Carver, Wednesday, July 1, 2009