19 MARCH 2012

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Article from BTNews 19 MARCH 2012

Airline absorbs APD Increase for UK Flights

TAM Airlines, the Brazilian carrier soon to be integrated with LAN Chile, has chosen to absorb the increase in Air Passenger Duty (APD), which takes effect on 1 April, for all its passengers that had booked and paid in advance for their tickets prior to the British Government’s Autumn Statement of 29 November 2011. The Government is insisting on no retrospective discount.

From Heathrow, TAM Airlines flies direct to both São Paulo and Rio de Janeiro, which currently fall into band C for APD, while many onward services to Argentina, Paraguay, Chile, etc, come into the highest band, D.  APD is applied to all flights outbound from the UK.  There is no equivalent tax levied by the Brazilian authorities.

The rate of APD (per person) on flights to Brazil imposed by the British Government will be, as of 1 April, £81 in Economy Class and £162 in all other cabin classes.  The rate for destinations from the UK in band D will be £92 and £184.  When the tax was introduced in 1994 the cost of APD on flights to South America was £10. www.tam.com.br

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