The Fair Tax on Flying

[lbaspotter]

Airlines and Airports around the Country are backing the "Back Fair Tax On Flying" campaign that highlights the importance of aviation to the UK economy and the industry

Source: http://www.facebook.com/#!/notes/le...t2com-back-fair-tax-on-flying/207417982603209

LBA and Jet2.com Back Fair Tax On Flying

Left-right Jet2.com cabin crew Vicky Veecroft from East Morton and Julie Haigh from Birkenshaw with LBA’s Tony Hallwood

To mark the start of British Tourism Week Leeds Bradford Airport has joined forces with Jet2.com to back a campaign calling for a fair tax on flying.

In an open letter to Transport Secretary, Philip Hammond MP, and local politicians the campaign highlights the importance of aviation to the UK economy and the industry’s desire to grow sustainably. The letter also notes that holidaymakers or business travellers flying from the UK pay by far the highest levels of flight tax in Europe. It calls on their support for the Fair Tax on Flying campaign by writing to the Chancellor of the Exchequer ahead of the Budget later this month.

With fuel prices reaching record levels, the campaign is calling on the Government to halt any further rises in aviation tax, with revenue from Air Passenger Duty (APD) having increased by 2600% since it was first introduced in 1994. This year £2.2 billion of holidaymakers' and business travellers' money will pour into the Treasury's coffers. The Government has stated that it intends to raise the tax by a further £1.4 billion by 2015.

Tony Hallwood, Leeds Bradford Airport’s Commercial Director, said: “Through the Fair Tax on Flying Campaign we are urging the Chancellor to consider the important role that leisure and business travel plays in stimulating our economic recovery. We strongly support the need to get our economy back in shape and can help deliver the jobs and growth that the UK needs. Leeds Bradford Airport plays a key role in boosting inbound tourism and attracting inward investment to Yorkshire.”

Ian Doubtfire, Managing Director of Jet2.com said, “We offer our customer’s great value leisure flights to city, sun and ski destinations and want to make it possible for people to be able to travel from their local airport at a price they can afford.

The taxes imposed on UK flyers, the highest in Europe, discourage people and are unfair, and they are set to rise with nothing for people to show for the high tax they have paid. This burden on customers will increase with the introduction of the EU emissions trading scheme in 2012. Jet2.com calls for the UK Government to ensure that APD is reduced with the introduction of emissions trading and not just used as an extra means of generating tax from hard pressed consumers".



About a Fair Tax on Flying

The Fair Tax on Flying (http://www.facebook.com/afairtaxonflying) campaign is an alliance of more than 25 airlines, airports, tour operators, destinations and trade associations who are uniting to call on the Government to make the system of aviation tax in the UK fairer. We already pay the highest levels of aviation tax of any nation in Europe.

Fair Tax on Flying campaign members include: ABTA, AOA, ANTOR, British Airways, BAA, BAR-UK, BATA, BMI, Bristol Airport, ETOA, Gatwick Airport, Jet2, Lastminute.com, London City Airport, Leeds Bradford Airport, Luton Airport, Manchester Airport Group, Monarch, Newcastle Airport, The Caribbean Council, The Co-operative travel, Thomas Cook, Tourism Alliance, TUI Travel PLC, ukinbound, Virgin Atlantic.

The alliance have set five tests that they are asking the Government to take into account as they review the overall structure or level of aviation tax:

· Will any revision increase the overall amount travellers pay to fly to and from the UK?

· Will any change be designed to be offset by the income from the UK's inclusion in the European

Union Emissions Trading Scheme (ETS)?

· Will a new approach remove the unfairness that travellers buying a premium economy ticket for a few extra inches of legroom are classed the same as first class travellers and pay double the rate of tax?

· Will any new policy address concerns that defining bands by national capital cities creates unhelpful exceptions that are unfair to passengers and damage destinations?

· Has the policy's impact on destinations, trade and tourism been adequately understood and considered?

More information can be found at http://www.facebook.com/afairtaxonflying or at http://www.aoa.org.uk



For further information please contact: [email protected]

 

[Aviador]

The UK tax Air Passenger Duty is ridiculous. Most other countries don't have such draconian measures inflicted on there airline passengers. The UK needs to get rid of this ridiculous tax so airlines can operate on a level playing field with their European counterparts.

 

[News Guru]

Leaked report suggests APD to be increased in budget

Passengers could face another hike in Air Passenger Duty (APD) in this week’s budget, according to a leaked report. The Government is planning its fourth APD hike in three years, according to the Evening Standard. It is also planning a new tax on private jets and cargo flights.

The move comes despite strong objections from the aviation and travel industry. Earlier this month they united to call for a reform in the tax, with the Fair Tax on Flying campaign, which is being coordinated by ABTA with the support of companies including British Airways, easyJet, BAA and a number of UK airports.

In a letter to the Chancellor, the campaign said any increase in APD will ‘incentivise the strengthening of alternative hubs to the UK both in and outside Europe and reduce the number of connections and destinations served by UK airports.’

Source

 

[Aviador]

The Manchester Airport Group has now signed-up to this campaign. Whatever the Chancellor does in the Budget this week I think this will send a clear message that the aviation industry has had enough of being over-taxed.

 

[lbaspotter]

Looks like some UK regional Airports and Airlines are not happy with the deal that the government have done with Belfast regarding dropping ADP on there New York route.

See below: http://www.ttgdigital.com/news/regional-aviation-players-demands-fair-apd-reduction/4681790.article

Regional aviation players demands fair APD reduction

A regional airport chief executive has suggested that the reduction of APD in Northern Ireland could possibly be illegal under EU State Aid Regulations.

Dave Laws, chief executive of Newcastle Airport said: “Any differentiation based upon geographical criteria, which appears to be the case with the Northern Ireland proposal, would be unfair and possibly illegal under EU State Aid Regulations.”

Laws added: A much fairer, and probably legal, approach would be to give all regional airports a stimulus by varying the rate of APD between congested and non-congested airports, thereby protecting the interests of all disadvantaged regions.”

His comments come after 12 regional airports and airlines have written to the chancellor George Osborne demanding a reduction in APD in the regions.

The group argues that the tax should be reduced on all flights from UK airports outside of London.

In the letter, the group says: “Regional airports and airlines have a lower percentage of business travellers or inbound tourists than the London airports, and have been hit hard by economic downturn. That’s not just bad news for our businesses. It’s bad for jobs, bad for inward investment and bad for wealth creation in the UK regions. If the government is serious about truly rebalancing the economy, then decisive action is needed on behalf of the 86 million passengers that fly from our airports.”

The joint letter is signed by Birmingham Airport; Bristol Airport; Exeter Airport; Flybe; Glasgow Prestwick; Jet2.com; Leeds Bradford Airport; Loganair; Manchester Airports Group (Manchester, East Midlands, Bournemouth and Humberside Airports); Manston International Airport; Newcastle International Airport and Newquay Airport.

 

[TheLocalYokel]

I much prefer the idea that APD should be drastically reduced if not abolished altogether. The idea of regional or national variations will inevitably lead to unwelcome outcomes that were not foreseen.

The UK's APD is slowly making the industry less competitive as European countries with less onerous aviation tax regimes reap the benefit.

Later this autumn the government is to publish its response into the consultation re APD that took place earlier this year. One of the things being considered is the devolution of APD to the governments of Wales, Northern Ireland and Scotland.

They could then set their own APD rates whilst English airports would continue to be subject to the whim of the Coalition Government which means that ministers representing constituencies outside England would have a say on matters solely affecting England. Where have we heard that before?

 

[Jordan-34092]

Chancellor admits APD ‘just a tax grab'

Air Passenger Duty (APD), the Government's ‘green’ levy that adds hundreds of pounds to the cost of family holidays, is a simple tax grab on hard-pressed households, the Daily Mail reports the Chancellor has admitted. The air tax has been described as an environmental measure designed to discourage air travel, but in a leaked letter, George Osborne says: ‘APD is fundamentally a revenue raising duty and currently raises around £2.5billion per year.’

Mr Osborne is expected to announce a rise in APD for 2012 in next month’s autumn budget statement. At present, a family of four flying economy to Florida pay £240 in APD, which was introduced by the Conservatives in 1994 as a straightforward way to raise money but was rebranded as a ‘green’ tax by Labour, used to discourage plane use.

The admission that the tax is nothing more than a way of raising cash - the funds raised by the tax have always gone in to a general treasury pot, and are not used for any specific environmental projects - was made in a letter dated August 12 to Olivier Jankovec, director general of the Brussels-based airports body Airports Council International (ACI).

Source

 

[Seasider]

Surely it would be better for "The Nation" if APD encouraged people to fly from the regions (they are thousands who use the London Airports who could use the regional ones). This would reduce the amount of travel to London, ensure routes are more viable from the regions and (best of all I think) reduce the need for extra capacity at the London Airports.

 

[Jordan-34092]

Surely it would be better for "The Nation" if APD encouraged people to fly from the regions (they are thousands who use the London Airports who could use the regional ones). This would reduce the amount of travel to London, ensure routes are more viable from the regions and (best of all I think) reduce the need for extra capacity at the London Airports.

Oh and roads in and out of london will be a tad less congested.

 

[Aviador]

The Air Passenger Duty has had a massive impact on the UK aviation industry. Scores of flights throughout the UK have been scrapped. Caribbean cruise flights have been cancelled at many regional airports with companies siting the APD tax as the primary reason for the flights stopping. The airline Flybe which has the UK's largest offering of domestic flights recently announced massive profit reductions and British Midland International announced it was cutting back on flights to London from both Edinburgh and Manchester. I would be very interested to know what the total cost of introducing the Air Passenger Duty has been to the economy? If the APD is allowed to raise again, it is very likely that more services will cease and we may even start to see reductions in flights to Europe from some regional airports.

 

[News Guru]

Flybe boss calls for review of ‘scandalous’ air tax

Flybe managing director Andrew Strong has called on the Government to fundamentally reform air passenger duty (APD) to make it fairer for passengers taking domestic flights. He told a meeting of more than fifty MPs that aviation can help drive the recovery in regional economies, but it needs government help to reform the air tax.

Speaking at the British Air Transport Association (BATA) annual parliamentary reception, Mr Strong said it was unfair that passengers taking domestic flights had to pay twice as much in APD as those flying abroad. He said: ‘At present, the domestic passenger suffers what has been coined the ‘double-dip’ where UK domestic flyers pay APD twice and those flying abroad pay just once. This is because APD only applies to outbound flights from the UK.'

‘It is scandalous that a return passenger travelling between Glasgow and Belfast City, some 100 miles, pays double the tax of someone flying between Glasgow and Dalaman in Eastern Turkey, a flight of more than 2000 miles.’

Source

 

[News Guru]

easyJet, Ryanair, BA and Virgin call for APD to be scrapped

Four of the largest airlines operating in the UK have called for the Government to scrap Air Passenger Duty (APD) under the slogan Axe the Tax. APD has risen sharply since it was introduced in 1994, from between £5 and £40 per ticket to between £24 to £170 now, with a further rise expected next year.

easyJet, Ryanair, Virgin Atlantic and British Airways have joined forces ahead of the Chancellor’s Autumn Statement on November 29, when it is feared George Osborne will announced a sharp rise in APD from next April. The Chancellor’s Budget Statement in March suggested a double-the-inflation-rate rise next year after a freeze this April.

The airlines said today that APD penalises British holidaymakers and makes the UK a less attractive destination. They said that as the tax was first introduced to combat greenhouse gas emissions, it should be abolished with the introduction of the EU's Emissions Trading Scheme next year.

Ryanair chief Michael O'Leary told the BBC that as a result of APD, 30 million fewer overseas visitors had come to the UK in the past five years. He added that with UK passengers having to pay the new Emissions Trading Scheme tax from January, they will be ‘taxed on the double’.

Willie Walsh, chief executive of International Airlines Group, the owner of British Airways, called on Chancellor George Osborne to set up an independent review of APD. He said: ‘This tax is hugely damaging and must be scrapped. We challenge the chancellor to undertake an independent review, which will show that the net effect of this tax is damaging.’

The UK levies the highest rate of aviation tax in the world. However, the government has made clear that it regards the tax as an important way of raising revenue, with it expected to generate more than £2bn this year. A Treasury spokesman said that the Government had frozen APD this year, and that, unlike many other countries, the UK did not levy VAT on flights. It is suggested that the tax will be increased by 10% next April.

Source

 

[tleeds]

I saw on the news I think it was yesterday Willie Walsh and Michael O'Leary talking to the BBC News Channel on the issue. It seems that the government will have to reduce the APD at it's current level and also scrap the idea of a rise next year.
I can't see the government pushing the APD higher next year and I think they will have to reduce it, under the amount of pressure that they are currently receiving...

 

[Aviador]

I saw on the news I think it was yesterday Willie Walsh and Michael O'Leary talking to the BBC News Channel on the issue. It seems that the government will have to reduce the APD at it's current level and also scrap the idea of a rise next year.
I can't see the government pushing the APD higher next year and I think they will have to reduce it, under the amount of pressure that they are currently receiving...

The trouble is people from various backgrounds are coming forward and fighting their case for reduced taxation. Another one in the news this week was the motorist who will be faced with a 3p per litre hike on the price of petrol. I can't imagine there's going to be enough 'give' to enable any leniency on both (especially with all this foreign aid we're now paying for :s_omg )

 

[News Guru]

Flybe joins airline calls to axe APD

Flybe's Chairman and Chief Executive, Jim French, has backed the views voiced this week by other airlines highlighting the impact of APD and the damage it is doing to the UK economy and to hard-pressed families. His comments follow calls from the CEO's of BA, Virgin, easyJet and Ryanair for the tax to be scrapped when the EU Emissions Trading Scheme is launched in January.

Mr French said: ‘Domestic air travel has been hammered hard over the past four years. In 2007, APD was £5, a sum in line with that now being charged by several other European countries. Today, UK APD is £12 one way. The result? Four million less domestic air passengers travelling, equating to a 21% decrease in passenger numbers passing through the country's regional airports.'

'I cannot stress enough that the success of regional aviation is crucial to regional development. In supporting commerce, industry and social mobility - not to mention much-needed employment. The Scottish Office has recognised this for years in the Highlands and Islands. And indeed the UK Government itself has actually acknowledged that this harmful tax restricts air travel by lowering APD for the Continental airline service from Belfast International to Newark!'

'It is absolutely scandalous that the domestic passenger is being hit hardest in what Flybe has coined the 'double-dip' with UK, with domestic flyers being penalised by having to pay APD twice. This is because APD only applies to outbound flights from the UK so those flying abroad pay just once.'

'How can this Government be serious about developing regional economies when they are taxing the industry out of existence? On the one hand they claim to be promoting regional airports by restricting the development of runways in the South East whilst at the same time penalising the industry through taxation the next.'

'Unlike every other form of transport, excepting bicycles, air travel is not subsidised; rail and bus travel is heavily subsidised. The aviation industry does not ask for billions of pounds of subsidy to buy new planes or build new airports. It pays for this itself. Air travel costs the UK tax payer nothing.'

'At a time when the country can ill afford to compromise economic growth, it is quite simply nonsensical for the Government to ignore the facts and not to publicly acknowledge that APD is severely impacting the viability of much-needed regional development.'

Source

 

[lbaspotter]

Well it looks like its not just us the Enthusiasts, Regular Passengers, Airlines and Airports that are noticing the effects of ADP. As its been reported that the rest of the British Public is starting to wise up higher air taxes at last according to this report from the Travel Trade Gazzet.

I just hope that the chancellor George Osborne may do something about ADP at next weeks budget review on Tuesday. We can all wish and hope he drops it, But I think that wont be happening anytime soon seen that it's such a cash-cow for the Tax man.

British public 'wising up' to higher air taxes
24 November 2011 | By Rob Gill

More than two-thirds of the public think that they already pay too much tax when they take flights, according to an Abta survey.

Abta has released details of the survey as part of the ‘A Fair Tax on Flying’ alliance campaign just days before chancellor George Osborne is expected to announce a double inflationary rise in Air Passenger Duty during his autumn statement on Tuesday.

The survey found that 69% of the British public were already unhappy with the current level of aviation taxes while 65% now paid close attention to the amount of tax being charged on their flights – this was up from a figure of 58% in 2010.

It also found that 43% of passengers would be put off from flying by higher aviation taxes.

Abta chief executive Mark Tanzer said: “For too long successive governments have relied on public ignorance of Air Passenger Duty to steadily increase this damaging tax to the highest levels in the world.

“Our research shows that the public is wising up to this and is saying, enough is enough, no more increases.

Abta is estimating that APD on an economy flight to Spain would go up from the current rate of £48 for a family of four to £53 from April 2012 if the anticipated increase in the duty goes ahead.

On the same basis, APD on an economy flight to the US would rise from £240 to £264 for a family of four, or from £300 to £330 for a Caribbean flight and from £340 to £374 to Australia.

Julie Southern, Virgin Atlantic’s chief commercial officer, said: “We are very concerned that the chancellor has failed to rule out retrospective rises in Air Passenger Duty.

“Hundreds of thousands of customers could be affected. We urge the Government to take our advice and not increase this ridiculously high tax any further.”

Source: http://www.ttgdigital.com/news/gene...wising-up-to-higher-air-taxes/4682352.article

 

[lbaspotter]

Oh well we all wish that the Chancellor George Osborne would have dropped Air Passenger Duty (APD) or frozen it, But no that's not happening. Instead APD will be increased from April 2012 by a “double-inflation” amount of around 10%.

What a stupid decision this is, Dose this Government really know how bad this is for Aviation in the UK Regions? It looks more like there trying to kill aviation...

Source: http://www.ttgdigital.com/news/air-passenger-duty-rises-to-go-ahead/4682393.article

Air Passenger Duty rises to go ahead
29 November 2011 | By Rob Gill

The Treasury has confirmed that Air Passenger Duty will be increased from April 2012 by a “double-inflation” amount of around 10%.

Chancellor George Osborne had frozen the rates of APD during his budget earlier this year but there will be no further postponement of the increases from April 1 next year.

The “double inflation” rise in APD was confirmed in documents released following Osborne’s Autumn Statement in the House of Commons today.

No details of the figures were announced as they will be released on December 6 when the government gives its response to the APD consultation launched in the spring.

The government is also expected to give details of changes to the structure of the duty which could help destinations such as the Caribbean which have been disproportionately affected by the current four-band system. A three and two-band system have been proposed.

“Air Passenger Duty rates will increase from 1 April 2012, as set out at budget 2011,” said the Treasury in the Autumn Statement document.

“The government will also proceed with the extension of APD to flights taken aboard business jets, effective from 1 April 2013. Details will be set out in the government’s response to the APD consultation on December 6.”

While no figures have yet been given on the new rates of APD, Abta is anticipating a 10% rise which would increase a short-haul Band A flight from £12 to £13.25 per person, Band B would go up from £60 to £66, Band C would rise from £75 to £82.50, and Band D would rise from £85 to £93.50.

 

[Aviador]

Well this government has already just about killed off domestic air travel. George Osborne has confessed this so-called 'green' tax is just that and it isn't even going to projects to reduce greenhouse gasses. From April next year the knife is on European and long haul flights. It's already proven that aviation plays a huge roll in regional economic growth. Where regional airports thrive, you tend to find the local airport thrives with it bringing huge amounts of inward investment. Like George Osborne, we can all but hope with 'a wing and a prayer' that this ridiculous tax wont be enough to kill off the aviation industry altogether. Like most things associated with the ConDems what has gone right for them so far? There's only so long you can blame the previous administration. An old proverb, don't bite the finger that feeds you. The finger being the airline industry in this case.

 

[tleeds]

It's just getting ridiculous now. No wonder many airlines are finding it difficult to trade. Astreaus have gone, Thomas Cook very nearly and American Airlines today announcing that their parent company has filed for Chapter 11 Bankruptcy.

I do hope it doesn't increase anymore!

 

[Jordan-34092]

Tell you if the Aviation Industry did go it would be a big shock to the stupid cons, after what would pay for there huge salaries for doing F*** all.

I do apologize for my language but i do get wound up really easily by the government.