US airlines say short-haul passengers should pay higher tax
US airlines are pressing the UK Government to increase air passenger duty for short-haul passengers but reduce its proposed tax rise for those travelling long-haul.
American Airlines, Delta and United Airlines commissioned a study by research consultancy Oxford Economics which showed that if the Treasury increased APD on short-haul routes by up to £6 more than planned to £19 per passenger, it could reduce its proposed hike on long-haul flights without reducing its income.
The study suggested that the tax for long-haul flights of up to 4,000 miles, including flights to the US, should increase to £51, rather than the £65-£75 proposed by the Treasury.
It claimed that under the current system, there was a disproportionate tax burden on long-haul travellers, which it said was "harmful and contrary to sound economic policy".
Since the tax was introduced in 1994, APD on short-haul flights has risen by 76% but on long-haul flights it has gone up 520%.
"Data from the Office for National Statistics show that long-haul visitors typically spend twice as much as short-haul travellers when visiting the UK, making them more valuable to the country’s economy," said the report. "In addition, long-haul destinations include many rapidly growing and emerging markets with which the UK is looking to increase its trade.
It concluded 'a fairer apportionment of the overall tax' with economy passengers with journeys less than 2,000 miles paying a higher rate of £19 while those travelling further pay £51.
By Linsey McNeill
Linsey McNeill
Editor Linsey McNeill has been writing about travel for more than three decades. Bylines include The Times, Telegraph, Observer, Guardian and Which? plus the South China Morning Post. She also shares insider tips on thetraveljournalist.co.uk
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