30 October 2009

Cameron urged to axe further APD rises

Virgin Atlantic has called on Tory leader David Cameron to scrap further Air Passenger Duty hikes if the Conservatives are elected to power next year.

The first of a two-stage rise in APD comes into force on November 1 followed by a second increase in 12 months time.

The airline’s chief executive Steve Ridgway said: "These proposed increases will not only hurt the aviation industry but also harm the British economy and those of many developing countries, like the Caribbean, which heavily rely on the tourism trade. It will also tax many hard working British holidaymakers out of flying altogether.

"We are therefore calling on the Conservatives to see sense on this issue and commit to scrapping the planned increase for 2010 if they are successful at the next election. Everyone knows the airline industry, along with the wider UK business community, will be severely damaged by these unjust future increases in APD.

"The Government seems to claim this is an environmental tax despite a total lack of evidence to support this claim.

"Aviation is already paying its own way for carbon emissions generated and any further increases in APD are simply lining government pockets."

The carrier supports proposals for a global carbon emissions trading scheme involving all airlines, being proposed at December's Copenhagen Summit. The proceeds from the scheme will go towards finding clean energy solutions.

Virgin Atlantic’s main concerns about APD are:

· Short-haul routes, where there is often a viable alternative, will receive the smallest increases in APD while the largest will be applied to long-haul routes where no alternatives exist

· The levels of APD bear little relationship to the environmental impact of air services

· These extraordinary tax hikes will severely harm the UK aviation industry - we urge the Government not to penalize the airline industry to an extent that no other country would contemplate

· British business and the British economy will suffer as passengers will fly via third countries to avoid the tax

· The new banding system is discriminatory against many regions, including the Caribbean which is heavily reliant on the tourism industry

· Hard working holidaymakers will be hard hit by this unjust tax

· Premium Economy passengers will be unfairly hit with the same charges as Upper Class passengers despite their fares being much lower

· APD should be withdrawn as soon as aviation becomes part of the EU Emissions Trading Scheme in 2012 otherwise the UK aviation industry would be taxed twice-over

The increases mean that the APD tax on a flight from Heathrow to Dubai will go up from £40 to £60; the tax on a Premium Economy ticket from Gatwick to Barbados will go up from £80 to £150 and the tax on an Upper Class flight from Heathrow to Sydney will rise from £80 to £170.

The airline’s e-tickets since July have carried messages criticising the unjust tax increase by the Government, and asking passengers to visit a new information website www.virginatlantic.com/unjusttax so they can protest to their local MP about the increases.

*See linked APD story.

by Phil Davies