Airline passenger news and views
07 February 2012 | Sign In
APD upsets BA
ADP - a boost to non-UK hubs
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Eugene Gold Friday 9 July 2010 |
The Con-Lib coalition are committed to reducing public spending and increasing tax income but are wary of hikes in headline income tax. Enter the Air Passenger Duty as a likely candidate for milking. Treasury forecasts show that the £1.9bn raised last year will become £3.8bn in 2014-15.
BA’s Willie Walsh said: "APD on long-haul routes will have tripled in four years. We are in severe danger of pricing large numbers of people out of flying."
The airline industry lost a collective £31bn over the last decade and is now being faced with punitive tax burdens including a $10bn tax contribution towards the United Nation's Copenhagen accord on climate control.
For BA, the more immediate worry is Government's plans to switch the current APD regime from a passenger to a per-plane tax. For BA, this is not just about the tax burden. They see a risk of traffic being diverted through hubs outside the UK, giving minimum reduction in carbon emissions and maximum damage to BA’s long-haul business model.
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Ben Holmes, Leicester 12 July 2010, 11:45AM | |
Willie Walsh is right on this, APD could result in pricing large numbers of people out of flying. It would also increase carbon emissions by diverting traffic through hubs outside the UK. | |
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Brenda Lampton 8 June 2011, 05:39PM | |
There is one certain rule, if it moves or is popular that it will be taxed. APD is not about green or environmental protection, it is about raising taxes. It is so very sad that government, and it does not matter whether it is EU, UK or local, will spend money and find ways of getting it from us. They seem to miss the irony but some of the money from APD and all the other carbon offset and similar taxes goes to pay for bombs and environmentally damaging wars. It is time that people had a say in taxation and how it is spent. | |
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