Virgin slams Treasury for ignoring air tax consultation
Virgin Atlantic today accused the Government of ignoring the wishes of vast majority of those who took part in its consultation on air passenger duty when it decided not to alter its four-band price structure.
In response to a parliamentary question from MP Henry Smith, the government admitted that 57% of those questioned had called for a two-band system and that only 6% wanted to retain the existing four bands. Eight of the 136 respondents wanted a three-tier system.
The Treasury announced in November that Premium Economy passengers will continue to be charged the same tax as those flying in business and first class even though the Government admitted today that 77% wanted the tax for Premium Economy passengers reduced.
Only 16% said they wanted the tax to remain the same for Premium Economy, while 7% had no clear preference.
Virgin's chief commercial officer Julie Southern said: "What's the point of a costly consultation if you are going to ignore the vast majority of people and go with just 6% of responders on the key issue? It is now clear that there were clear majorities in favour of a simpler two band system and ending the ridiculous rules which mean Premium Economy passengers pay the same rates as those travelling in Upper or First class."
The Government has refused to reveal how much it spent on the consultation, but it said it decided not to alter the price structure for APD as this would have led to 91% of passengers paying more.
Southern claimed this was not the case. "This is simply untrue as it depends on the rates chosen for the different bands," she said. "Any banding could have gone up or down to produce a revenue neutral outcome,
"The Government had claimed that 'a substantial minority' argued against a change in the rules for Premium Economy. We now know just 16% argued for the status quo."
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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