easyJet announced (28-Oct-2009) the vast majority of people in the UK support a reform of Air Passenger Duty (APD), according to a YouGov survey, commissioned by the carrier, in the run up to the forthcoming increase in APD on 01-Nov-2009. The analysis shows that 80% of the population agree that all flights, including cargo and private jets, should be taxed, while 69% said the tax ought to be designed to tackle climate change. In addition, almost two thirds of those questioned (65%) agreed that APD should also cover foreign transfer passengers. [more]
British Airways CEO, Willie Walsh stated the increase would “traumatise” an already suffering aviation industry and called on the UK Government to revise the increase (Travel Mole, 28-Oct-2009)
IATA meanwhile stated (29-Oct-2009) the increase in the APD is the wrong response to the industry trauma. According to IATA, the GBP2.5 billion APD is completely disproportionate to the GBP572 million that it would cost to offset the entire carbon footprint of UK aviation. [more]
easyJet: “Air Passenger Duty is a daft tax that the Government promised to reform. It broke its promise and increased the tax burden on the average family instead. People don’t understand why their tax is going up again while pampered fat cats on private jets, cargo planes and foreign transfer passengers still don’t pay any tax at all. How can the Government justify a tax break for 20 million foreign transfer passengers while charging a British family of four GBP44 to go to Europe? We need to make air tax greener and fairer now. It should be reformed from a poll tax into a flight tax that taxes emissions, not families." Andy Harrison, CEO. Source: easyJet, 28-Oct-2009.
IATA: “The policies of some governments in light of the industry’s trauma are disappointing. The UK is a case in point of a government detached from reality. The global economic crisis makes cost reduction a matter of survival. And the upcoming Copenhagen meeting on climate change demands attention on measures to reduce emissions. What is the UK government doing? They have it all wrong. Taxes won’t reduce emissions. And making travel more expensive will not stimulate the economy” Giovanni Bisignani, Director General and CEO. Source: IATA, 29-Oct-2009.