Operators pledge to reflect APD cut in holiday prices

Thomson Airways was the first to publically state that it will refund children’s air tax on holidays already booked for next summer following the Chancellor’s decision to axe APD for under 12s from May, 2015.

The Chancellor will extend tax -free flights to under-16 in 2016, it was announced in yesterday’s Autumn Statement.

Thomson Airways welcomed the move, which affects only economy flights, and said it would refund any APD that is no longer applicable and reflect the changes in Thomson and First Choice holiday prices.

However, it added in a statement: "We still believe further reform is required to ensure the UK aviation industry remains competitive with other markets and remain fully supportive of the fair tax on flying campaign."

Monarch later said it too would refund APD already paid for flights for 2 to 11 year olds from May 1, 2015 and that it would reflect the change in its pricing.

CEO Andrew Swaffield said: "We look forward to hearing the detail of this announcement and to working with industry bodies on its implementation."

While the rest of the travel industry welcomed the abolition of the children’s tax, many operators and airlines felt the Chancellor did not go far enough.

Hugo Burge, CEO of Momondo Group (operator of Cheapflights.co.uk), said: "This is a step in the right direction and welcome news for families, but the UK still has punishingly high aviation taxes, something which flies in the face of the government’s growth agenda – and hits holidaymakers in the wallet.  

"There is still a long way to go to wind back a series of stealth increases which has seen APD rise from just £5 in 1994 to the £71-plus in tax which British holidaymakers will continue to pay for long haul (Band B) destinations even after April 1 2015.

"APD shackles businesses seeking to fly the flag abroad, discourages tourists from visiting the UK and punishes hard-pressed British holidaymakers. We will continue to press for its abolition."

Saga Travel’s Louis Myers said: "Scrapping Air Passenger Duty for children under 12 will be of great benefit to families – both parents and grandparents, many of whom pay for family holidays – we know that a quarter of grandparents take their grandchildren on holiday.

"Also, with the Scottish Parliament potentially being given powers to vary APD there could be a boost for Scottish airports and tourism.

 "In the future the Chancellor should consider reducing or abolishing the tax for all travellers."

UKinbound’s chief executive Deirdre Wells OBE said: "We are delighted that the Chancellor has announced some advantageous changes to APD. The UK’s APD is the highest passenger flying tax in the world and these steps to make this tax less of a burden to tourism is to be applauded.

"As a member of the Fair Tax on Flying campaign, UKinbound supported the proposal to abolish APD on children’s fares and the organisation is to be congratulated on today’s success. Inbound tourism has lost out in recent years to European competitors and so this is a huge step in ensuring the UK remains as competitive as possible.

"We’re delighted with the Government’s support for the travel and tourism industry and this will certainly boost the industry’s chances of achieve their ambitious goal of welcoming 40 million visitors to the UK by 2020.

"APD was last reviewed only eight months ago so the changes today confirm tourism, and the benefits it brings to the UK economy, is high on the Government’s agenda.  Inbound tourism is particularly important as it currently contributes around 20 billion a year to UK PLC and anything that encourages more visitors is a good thing for the nation’s coffers and employment.  We now eagerly await to see what the Party Manifesto’s outline for tourism ahead of next year’s General Election."