Don’t accept APD meekly, says SIA boss
SINGAPORE – Chew Choon Seng, CEO of Singapore Airlines, has joined the squadron of airline chiefs attacking the UK government’s proposed increases to Airline Passenger Duty (APD).
Chew, speaking at the Association of Asia Pacific Airlines (AAPA) summit, said it was a foregone conclusion that aviation would be included in post-Kyoto climate change protocols.
“However the geo-political realities around environmental issues make it probable that there will be agreement to disagree and to defer resolution on a definitive accord to another time.â€
Chew said in that scenario, “the EU will likely proceed unilaterally to impose the European emission trading scheme (ETS) on Asia Pacific airlines, come 2012, with compliance requirements along the way between now and then.
“The danger for us, airlines in Asia Pacific, is that emissions will be related to the distances flown from our respective home bases to points in the EU, and back.â€
Chew said that “like what the infamous APD of the Brown government in the UK has morphed into â€this would impose a heavier price on customers of Asia Pacific airlines relative to those airlines whose homes are nearer Europe.
“In the APD structure we fall into either the tier of 4,000 to 6,000 miles or the furthermost tier of more than 6,000 miles from London.
Chew added, “When the APD rates are increased next year our passengers will have to pay as much as GBP 100 more per round trip in APD than those of airlines based less than 4,000 miles from London, say somewhere between India and the Mediterranean.â€
Chew said the principle was unfair and discriminatory.
“We should not acquiesce meekly,†he stressed.
Ian Jarrett
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