UK air tax starts to hit long-haul travel

Tuesday, 10 Feb, 2011 0

The impact of the hefty rise in the UK’s air passenger duty (APD), which came into force at the end of last year, is having an impact on long-haul bookings.

According to a leading travel agent, quoted by the Daily Telegraph there has been a 17 percent fall in the number of holidays booked to so-called Band-C countries, between 4,000 and 6,000 miles from Britain, destinations that include the Caribbean, India and Thailand.

Last November countries in Band C saw duty go up from £50 to £75 per person.

An analysis of over 30,000 holidays sold by The Co-operative Travel has indicated since November compared with the same period 12 months ago, sales to the Caribbean are down 20 percent, and India, down 34 percent.

The Co-Operative group said that it was convinced the rise in APD was to blame, rather than the economic uncertainties, because sales of short-haul flights had increased.

The news that long haul business is suffering as a result of APD supports an attack on the UK government by the International Air Transport Association (IATA)

Giovanni Bisignani, IATA’s Director General and CEO, in a speech to the Aviation Club in London, said the government’s policy pillars of excessive taxes, inefficient airport regulation and limiting growth “will destroy the UK’s proud aviation legacy”.

“Aviation provides critical global connectivity to this island nation. It is a great mystery to me why the government seems so intent on destroying its competitiveness with a policy agenda stuck in the past,” Bisignani added.



 

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Ian Jarrett



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