24 NOVEMBER 2014


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Article from BTNews 24 NOVEMBER 2014

Cheap fares next summer?

Fuel cheaper, long haul APD reduced and more efficient aircraft.  Will air fares comes down next summer?

With Brent Crude now at around US$80 a barrel, as against US$130 a year ago, the fuel element of any flight could be down to the traditional 20% of direct operating costs as opposed to over 30% just one year back.  To this can be added the continuing introduction of the very fuel-efficient Boeing Dreamliners, often replacing fuel-guzzling four-engined 747s and Airbus A340s.  The A350 will have similar characteristics. 
For long haul travellers out of the United Kingdom APD is reduced from 1 April 2015 and there are some indications that the British Chancellor will either scrap or reduce the air tax parents have to pay for the privilege of taking their children on a flight.  For all flights over 2,000 miles from London to the capital city in question (Moscow is 1,554 miles and Cairo 2,181) the charge per person is £71 in Economy and £142 in Premium Economy upwards.  The 4,000 miles and upwards categories have gone.  For the business jet passenger (usually company paid) it is £426.

The Chancellor’s Autumn Statement will be made on 3 December.   www.gov.uk/government/organisations/hm-treasury

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