Airline passenger news and views

The government seems to be a sole warrior against everyone else in the case of Air Passenger Duty (APD) - a tax nearly the whole air travel industry seems to be against.

The confirmation of further rises in APD announced on December the 6th has caused disappointment in the travel sector, including travel association ABTA and carriers.

Carolyn McCall from easyJet, Willie Walsh from IAG, Michael O'Leary from Ryanair and Steve Ridgway from Virgin Atlantic jointly said:

"The Government's consultation on APD has been a sham and a waste of taxpayers' money.

"We are left with a tax that has already cost 25,000 jobs, is doing increasing damage to the prospects for economic recovery - and sends a message to the world that Britain is a difficult and expensive place to do business."

British Airways has also detailed how the government's decision will affect its plan to create approximately 800 new jobs in 2012 to support growth of its flying programme.

The British flag-carrier said this number will now fall to 400 positions, since such a level of recruitment will not be possible after the APD increase.

"Against an already difficult economic background, these fresh tax hikes make it impossible for us to proceed with this level of recruitment, so we expect to reduce this number by about half," read a statement from the airline.

The airline also said it would postpone bringing an extra Boeing 747 into service next summer, and the use of two others would also be "reviewed" the carrier said.

"APD is not creating the foundations for growth, it is destroying them," said Keith Williams, British Airways' chief executive.

"The Government talks about creating the conditions for jobs and growth - but the reality is the opposite.

"Its tax policy, which is uniquely hostile to aviation, is costing jobs and growth at British Airways.

"At a time of high unemployment for new graduates and school-leavers, it is deeply regrettable that these additional tax increases have propelled us into this decision," he concluded.

APD will be increased by double the rate of inflation - more than 10% - in 2012. This follows increases in APD between 140% and 325%, from 2007 to 2010.

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