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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 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. |
'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. |