News

06 December 2011

Damaging Air Passenger Duty rises need to be scrapped

The Airport Operators Association responds to HM Treasury’s statement on the structure of Air Passenger Duty (6th December 2011).

The Airport Operators Association (AOA) has acknowledged the announcement by HM Treasury on the structure of Air Passenger Duty (APD), following a consultation earlier in the year. It is clear that Air Passenger Duty (APD) will be increased by double the rate of inflation – more than 10% – in 2012. This follows increases in APD between 140% and 325%, from 2007 to 2010.

The Airport Operators Association (AOA) believes the Government’s decision on increasing APD is an unacceptable tax grab which will damage jobs and growth at a particularly difficult economic time. On top of this increase, passengers will be subject to double taxation when aviation enters the EU Emissions Trading Scheme in January 2012, as they will have to pay a new additional cost.

Airport Operators Association Chief Executive, Darren Caplan, said:

“We acknowledge the statement from HM Treasury, on changes to the structure of APD. However, it is clear that unless the Chancellor scraps the planned increases in next year’s Budget, the overall tax take from Air Passenger Duty (APD) will continue to soar – increasing by 55% between 2010/11 to 2015/16*. At a time when many other European countries are reducing or scrapping APD – and when the UK already has the highest level of aviation tax anywhere in the world – holidaymakers, business people and the travelling public will face even higher flying costs.

“The plan by the Chancellor to increase APD further, is bad for jobs, bad for growth and bad for passengers – the Treasury should listen to the ‘A Fair Tax on Flying’ alliance – of which AOA is a key member – and urgently re-think its plans for this double inflationary increase in the next Budget. The message to George Osborne is clear – “Please give aviation, air travelers and the UK economy a break.”

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Note to Editors:

For further information, please contact Luke Law on 07827 931480 or lukelaw@aoa.org.uk.

The ‘A Fair Tax on Flying’ alliance
Over 30 leading travel organisations including airlines, airports, trade associations and destinations. The campaign has created a dedicated Facebook page www.facebook.com/afairtaxonflying to raise awareness of the tax and allow consumers to register their views.

About the Airport Operators Association

  • Who we are: The Airport Operators Association (AOA) is the trade association that represents UK airports.
  • What we do: Our mission is to see UK airports grow sustainably. We represent the views of UK airports to Government, Parliament and Regulators to secure policy outcomes that help deliver our mission.
  • Who we represent: 70 UK airports. For more, see www.aoa.org.uk.

*Office of Budget Responsibility Forecasts, November 2011