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Holiday firms warn over 55% Air Passenger Duty rise Holiday firms warn over 55% Air Passenger Duty rise
(40 minutes later)
Air taxes are to rise by up to 55% on Monday, making some trips unaffordable, the travel industry has warned.Air taxes are to rise by up to 55% on Monday, making some trips unaffordable, the travel industry has warned.
A family of four flying in economy to Australia will now pay £340 in total taxes - an extra £120.A family of four flying in economy to Australia will now pay £340 in total taxes - an extra £120.
The same family in economy to the US will pay 33% more Air Passenger Duty, an extra £60 to £240. APD on premium class fares are double economy. The same family to the US will pay 33% more Air Passenger Duty (APD), up £60 to £240. APD on premium class fares is double that of economy.
Sir Richard Branson's airline Virgin Atlantic said the rise would put annual family holidays out of reach for many.Sir Richard Branson's airline Virgin Atlantic said the rise would put annual family holidays out of reach for many.
'Disgrace' 'Negative effect'
Virgin Atlantic's chief commercial officer Julie Southern said: "Holidays are an essential part of our lives and are valued even more in these difficult economic times.Virgin Atlantic's chief commercial officer Julie Southern said: "Holidays are an essential part of our lives and are valued even more in these difficult economic times.
"With passengers now being asked to pay up to 10 times more tax since APD's introduction, the annual family holiday will become unaffordable for many.""With passengers now being asked to pay up to 10 times more tax since APD's introduction, the annual family holiday will become unaffordable for many."
She added: "Our message to government is that this absolutely has to be the last time that the travelling public faces APD rises."She added: "Our message to government is that this absolutely has to be the last time that the travelling public faces APD rises."
British Airways chief executive Willie Walsh has called the tax a "disgrace" and travel industry body Abta continues to lobby ministers in protest at the APD rises.British Airways chief executive Willie Walsh has called the tax a "disgrace" and travel industry body Abta continues to lobby ministers in protest at the APD rises.
Mr Walsh said the increases would cost BA an extra £100m and would put more pressure on ticket prices.
"We believe the levels cannot be justified and are having a negative effect on the economic recovery in the UK," he said.
'Complete revamp'
The cost of APD for flights of less than 2,000 miles in economy class will remain at £11, with duty on premium tickets frozen at £22.The cost of APD for flights of less than 2,000 miles in economy class will remain at £11, with duty on premium tickets frozen at £22.
For journeys of between 2,001 and 4,000 miles the price will be £60 in economy class and £120 for other seats.For journeys of between 2,001 and 4,000 miles the price will be £60 in economy class and £120 for other seats.
For journeys of between 4,001 and 6,000 miles, the price is £75 in economy and £150 in premium classes. And flights of more than 6,000 miles will cost £85 and £170 respectively.For journeys of between 4,001 and 6,000 miles, the price is £75 in economy and £150 in premium classes. And flights of more than 6,000 miles will cost £85 and £170 respectively.
The mileage limits are just a rough guide as, for example, all trips to the US fall within one band, while those to the Caribbean are charged at a higher rate.The mileage limits are just a rough guide as, for example, all trips to the US fall within one band, while those to the Caribbean are charged at a higher rate.
It means that people flying eight hours to Barbados, for example, will pay £15 more tax - £30 for those in premium seats - than those heading four hours further to Los Angeles.It means that people flying eight hours to Barbados, for example, will pay £15 more tax - £30 for those in premium seats - than those heading four hours further to Los Angeles.
Bob Atkinson, from the travelsupermarket website, said: "The tax bands aren't consistent. APD is a flat tax and is therefore regressive. The tax should apply to the actual mileage or as a percentage of the total paid.Bob Atkinson, from the travelsupermarket website, said: "The tax bands aren't consistent. APD is a flat tax and is therefore regressive. The tax should apply to the actual mileage or as a percentage of the total paid.
"There needs to be a complete revamp of the APD scheme. It should be replaced by a per plane tax so that we can then see the environmental efficiency of each airline and their aircraft.""There needs to be a complete revamp of the APD scheme. It should be replaced by a per plane tax so that we can then see the environmental efficiency of each airline and their aircraft."
The government has cited environmental reasons for recent APD rises, saying they are an important contributor to the public finances, and help it achieve its green goals.The government has cited environmental reasons for recent APD rises, saying they are an important contributor to the public finances, and help it achieve its green goals.
APD, an airport departure tax, is automatically added to the ticket price when it is booked.APD, an airport departure tax, is automatically added to the ticket price when it is booked.
Will you be affected by the rise in air tax? What do you think of the changes? You can send us your views and experiences using the form below.Will you be affected by the rise in air tax? What do you think of the changes? You can send us your views and experiences using the form below.
At no time should you endanger yourself or others, take any unnecessary risks or infringe any laws.In most cases a selection of your comments will be published, displaying your name as you provide it and location unless you state otherwise. But your contact details will never be published.At no time should you endanger yourself or others, take any unnecessary risks or infringe any laws.In most cases a selection of your comments will be published, displaying your name as you provide it and location unless you state otherwise. But your contact details will never be published.