Budget condemnation

The Budget decision to freeze Air Passenger Duty (APD) rates for Economy Class passengers from 1 April 2019 and pay for it by increasing the tax on premium-class tickets and private jet travel was roundly condemned by the industry last week.

Rates for Premium Economy, Business and First Class in 2,000 miles-plus sectors will rise by £16 to £172, and for those travelling by private jet by £47 to £515. Short-haul APD rates for 2019-2020 will remain frozen, as they have been since 2012. The long-haul rate for Economy passengers will also stay at 2018-19 rates.

Airlines UK chief executive Tim Alderslade said: “The change is simply a sleight of hand move by the Treasury. APD remains the highest in the world (and) increasing the long-haul premium rate potentially threatens the viability of long-haul services that rely on non-Economy Class passengers.” 

Among airlines, regional carrier Flybe said it was “disappointed”, describing APD as “a highly damaging tax which penalises domestic travellers”. British Airways’ parent company IAG said it was a “dull and uninspiring” Budget.

AOA chief executive  Karen Dee said: “UK APD remains double the next highest rate in the EU, so it is disappointing the Chancellor has not gone further to address the competitive disadvantage this creates for the UK.”

www.airlinesuk.org  www.flybe.com

www.iairgroup.com  www.aoa.org.uk

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