Airlines slam UK tax hike

The UK government’s increase in air passenger duty (APD) from £10 to £11 in 2009 and £12 in 2010 has been roundly criticised by airlines and tourism organisations for the damage it will do to local tourism and regional airports.

Ryanair said it will now enter into discussions with regional airports about the future viability of passenger traffic and growth because of the increase and warned it may now have to hike ticket prices.

Rivals easyJet echoed the concerns with the airline’s chief executive, Andy Harrison, saying: “I am dismayed that the chancellor has failed to carry through his commitment to reform a bad tax. All parties agreed that APD needed to be changed to a tax on planes not people, but now the government has succeeded in bodging-up the reform of an already bodged tax. He has made a bad situation worse by increasing the burden of APD on hard working families.”

Meanwhile, Brian Deeson, interim president and CEO of the Pacific Asia Travel Association (PATA) warned: "At a time when the travel and tourism industry is facing an unprecedented threat to long-term financial stability we see a government in Europe imposing tax increases which pose a real threat to jobs and businesses not only in the UK but in destinations across the Asia Pacific region."

Source: Routes News