Airline passenger news and views

Air Passenger Duty (APD) has been the subject of an ongoing battle between the government and some airlines and travel associations, but it seems like it has entered a new level of negotiation.

Now, four of the most important UK airlines have teamed up to rise their voice on the matter. Easyjet, Ryanair, Virgin Atlantic and British Airways owner IAG have called on the UK government to scrap the tax.

In an open letter to Britain's finance minister George Osborne, the chief executives of the four companies asked for an independent report on the economic effects of the tax.

They refer to the case of the Netherlands, where a similar air tax imposed in 2008/9 had to be abandoned after a study showed its negative effects on the Dutch economy - four times bigger than the revenue produced.

The airlines say that the tax penalises British holidaymakers and makes the UK a less attractive destination.

The current APD model in the UK is applied to almost every ticket on a flight originating in the islands, and its amount depends upon whether the flight is short or long-haul, with business and first class travellers having to pay more than those travelling in economy class.

APD has risen sharply since it was introduced, from between £5 and £40 per ticket in 1994 to £24-£170 nowadays.

The four companies CEOs said in the letter: "For hard-working families APD is a tax too far for the privilege of taking a well-earned holiday. It is also a tax on tourism and a tax on business.

"Aviation doesn't just drive exports - it is a major exporter in its own right with our airlines earning nearly £11 billion of foreign revenues every year. Tourism is one of the UK's most important earners and is worth £115 billion to the UK economy."

As a response to the letter, a Treasury spokesman said: "We consulted on a range of reforms to APD, including simplifying the tax and making it fairer by extending APD to private jets.

"It is also important to remember that the UK is not the only country with an passenger duty, and unlike many other countries the UK does not levy VAT on flights."