UK Airlines Unite for Axe the Tax Campaign
Some of the UK’s biggest airlines have united to create a new campaign against Air Passenger Duty (APD), which the Government is expected to increase from April 2012.
The ‘Axe The Tax’ campaign sees the bosses of easyJet, Virgin Atlantic, British Airways’ parent IAG, and Ryanair joining forces to condemn the tax, which they say is damaging the UK’s economy. George Osbourne is set to reveal his autumn statement on 29 November, and is expected to announce a significant increase in APD from the following April, after freezing rises in 2011.
Airline chiefs Willie Walsh at IAG, Carolyn McCall at easyJet, Steve Ridgway at Virgin Atlantic, and Michael O’Leary at Ryanair unveiled the campaign against APD at the London Stock Exchange.
Virgin Atlantic and BA were both involved with the Fair Tax On Flying campaign created by ABTA earlier in the year, aiming to change the fact that the UK carries the highest rate of tax on air travel anywhere in the world. All four of the airlines involved in Axe The Tax have consistently criticised APD as a limiting factor to the growth of a variety of related industries in the UK.
However, the Treasury has indicated that a reduction in APD rates is unlikely, with Chloe Smith – the Economic Secretary to the Treasury – recently telling other MPs, “I cannot promise APD will be cut in the near future”. The Government did engage with industry leaders on the question of the APD tax earlier in 2011, and the results of that consultation are expected to be revealed by the Chancellor shortly.
Travel Industry news posted by Jan Moys on 17 November 2011
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