Passengers may face a £1bn bill from air tax rise
AIRLINE Virgin Atlantic yesterday warned that proposed changes to Air Passenger Duty (APD) could cost holidaymakers £1bn in extra taxes, as the government prepares to close its consultation on the matter today.
APD raised £2bn in 2010, but in its response to the possible reforms Virgin said this could jump to £3bn – with costs passed on to UK tourists and business travellers.
Higher charges are planned for a number of key routes from the UK, including the Caribbean, with airlines worried that passengers will cut down on travel if they go ahead.
“We already know that more than half of long-haul flyers say they would consider cutting down their number of long haul flights if there were further rises in APD,” said Virgin’s chief commercial officer Julie Southern.
There are also concerns that the Irish Republic’s plans to abolish APD will mean that Northern Ireland will lose out on business as residents cross the border for international flights.
“Aviation has a crucial role to play in UK tourism and the wider economic recovery,” said Southern.
“But this economic potential is being stifled by ever increasing levels of air passenger duty which is already the highest in Europe.”