Ed Anderson, Chairman of the Airport Operators Association, said: “Today’s Budget represents a failure by the Chancellor to stop this November’s damaging increase in Air Passenger Duty. Passenger numbers have fallen by almost 10% in the last year, but taxes on some routes will be more than double what they were in 2008. This means more tax, paid by fewer passengers.

“The UK already has the highest levels of aviation tax in Europe. By increasing the cost of flying from Britain we are penalising our passengers and businesses, who are still suffering the effects of the recession, and a slow recovery. The APD rise will make this recovery harder. It will cost the UK economy £748 million this year alone, and risk 18,000 jobs.

“The APD rises will hit passengers twice. They will hurt ordinary hard-working people by not only making it harder for them to get away on holiday, but by slowing economic recovery and threatening jobs. Today the Chancellor could have chosen to avoid that.

-- ENDS –

Notes to Editors:

1. The Airport Operators Association (AOA) is the trade association that represents the interests of British airports. Our membership comprises 72 airport companies, representing all of the nation's international hub and major regional airports in addition to many serving community, business and general aviation.

2. APD increases 2009/10:
Band A 0-2000 miles
2008 rate: £10.00
November 2009: £11.00
November 2010: £12.00
Percentage change 08-10: 20%

Band B 2-4000 miles
2008 rate: £40.00
November 2009: £45.00
November 2010: £60.00
Percentage change 08-10: 50%

Band C 4-6000 miles
2008 rate: £40.00
November 2009: £50.00
November 2010: £75.00
Percentage change 08-10: 88%

Band D 6000 miles
2008 rate: £40.00
November 2009: £55.00
November 2010: £85.00
Percentage change 08-10: 113%

1. The economic impact of the 2009/10 rises in APD, referred to in the release, was calculated as part of a study by Oxera Consulting Ltd. for the AOA. The full report is available online at: What is the contribution of aviation to the UK economy?Click to view document.

2. Oxera analysis of the 2009/10 APD increases:
GVA impact— in 2010 the effects of the planned APD increases will reduce the aviation sector’s GVA by £25 million. The effects on the wider economy will be greater, with up to £748 million of GVA foregone.
Tax impact— Oxera estimates that a £608 million increase in APD receipts in 2010 will be offset by the loss of up to £310 million in tax revenues from the wider economy.
Employment impact— the impact of the APD increases this November will mean that the economy supports up to 18,000 fewer jobs.

3. For further information, and for media requests, please contact David Bishop (Head of Policy) – 07917 681940; or Ed Anderson (Chairman) - 07711 837717