Air tax pressure mounts as Autumn Statement approaches

Pressure is mounting on the government to reduce Air Passenger Duty in its Autumn Statement on Wednesday, with easyJet, British Airways and Ryanair the latest to add their voices.

MPs are calling for a 50% reduction in the tax, which is one of the highest in the world, and say it should then be scrapped altogether.

Ireland has already scrapped APD and Scotland is planning to reduce APD by 50% in 2018.

Virgin Atlantic CEO Craig Kreeger said: "MPs are right to question why the UK has the highest tax on long-haul flying in the world. Cutting APD would boost trade, inbound tourism and support families. It would be another clear signal to the world that Britain is open for business."

The chief executives of easyJet, BA and Ryanair, who are all members of Airlines for Europe, warned in a joint statement that APD is ‘hampering growth’.

BA chief executive Willie Walsh said: "Other countries which have scrapped their aviation taxes have seen an immediate boost to their GDP and tourism. Why saddle businesses and tourists with a tax that your European competitors do not have?

"APD is well past its sell-by date and must be scrapped."

EasyJet chief executive Carolyn McCall said: "It is not just visitors to the UK the tax affects – people travelling between London and Edinburgh for example are currently being hit twice as hard by paying £13 each way on the flights.

"So, removing APD could also strengthen the connections within the UK."

Ryanair chief executive Michael O’Leary said: "The Irish Government scrapped this tax in April 2014, which resulted in immediate traffic and route expansion at Irish airports and an influx of high spending tourists to Ireland, with passenger numbers reaching record levels (from 23 million in 2012 to 32 million in 2016).

"We call on the UK Government to follow the Irish example and scrap APD for everyone, to allow Britain to become competitive and stimulate job creation and tourism."

ABTA said it welcomed the recent steps that have been taken to reduce the overall burden of APD on UK consumers and businesses, particularly in relation to the scrapping of bands C and D, and the abolition of child APD.

But it added: "However, APD remains the highest comparable air tax levied anywhere in the world, far exceeding the levels charged by our nearest competitors elsewhere in Europe.
 
"In order to ensure a competitive and fair rate of APD across the UK, ABTA is calling on the Government to reduce APD by at least 50% on short-haul and long-haul flights. A reduction of APD by 50% is the only way for the UK Government to prevent unfair situations arising whereby levels of tax are determined by a consumer’s postcode. As we start negotiations with the EU, it will make the UK more competitive internationally and demonstrate that the country is open for business."

Pilots union BALPA said APD should be scrapped completely.

BALPA General Secretary Brian Strutton said: "Pilots are pleased to see that MPs are putting pressure on the government to reduce air passenger duty but more needs to be done. We would like to see a removal of this unfair tax.

"We have been calling for air passenger duty to be scrapped for many years and especially post-Brexit we need to ensure the British aviation industry remains competitive.

"The industry needs support in these uncertain times and a further rise will only serve to discourage Britons from air travel."