APD – Progress at last

The air transport industry has welcomed a government statement that could reform domestic Air Passenger Duty (APD) following a report by Sir Peter Hendry, also chairman of Network Rail, on connectivity within the United Kingdom.

Speculation is rife that this might be a reduction to £7 per sector, or a one-off booking tax of £13, which can be for a return ticket, or even multi-sector.

Writing in an article in The Daily Telegraph, prime minister Boris Johnson was clear on his views. "It seems wrong that someone flying from Belfast to London and back pays more UK tax than someone flying from Dublin to London and back."

The change in the tax is unlikely to be immediate with Sir Peter not due to publish his final report until mid-summer, and then a possible delay on its implementation.

There has been the expected outcry from environmentalists but the fee, even it was to remain, has little effect on travel, and is handed over to the Exchequer in full, at a management cost to the airlines.  It will undoubtedly be promoted by government as supporting the airline/airport industry.

www.gov.uk/government/publications/union-connectivity-review-interim-report

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