Fingers crossed George Osborne remove Air Passenger Duty for children 12 and under today. That would be a positive move but it is only an opening offer.
As an industry, there is a great deal more to do not least the overall reduction of APD, an airport capacity finalisation plan, the imminent package travel directive, oil price movement and interest rate speculation and all this macro movement is aside from the ongoing market conditions to contend with.
Here is a view of the bands from 2009 to 2014:
|Bands||New Rate||from Nov 2009||from Nov 2010||from Apr 2012||from Apr 2013||from Apr 2014||2009 vs. 2014|
|Band A (0 – 2000 miles)||£11||£12||£13||£13||£13|
|Band B (2001 – 4000 miles)||£45||£60||£65||£67||£69|
|Band C (4001 – 6000 miles)||£50||£75||£81||£83||£85|
|Band D (over 6000 miles)||£55||£85||£92||£94||£97|
|Year on year % movement||Band A (0 – 2000 miles)||9%||8%||0%||0%||18%|
|Band B (2001 – 4000 miles)||33%||8%||3%||3%||53%|
|Band C (4001 – 6000 miles)||50%||8%||2%||2%||70%|
|Band D (over 6000 miles)||55%||8%||2%||3%||76%|
NB: Table taken from here
So, mid to long haul has been battered. The taxes take no account of aircraft efficiency. Suppose one had introduced a Dreamliner but was still getting hit by this tax which is based on ‘environmental’ policy. Your aircraft is x times more efficient than a competitor yet you’re customers are being hit by the same tax. Rubbish It’s just a tax regardless of the environment and the coffers aren’t being used to tackle environmental issues.
It’s a disgraceful tax on the UK consumer applied in an underhand way with no real justification. It’s complement and lazy policy ill thought through. It’s short term focused and penalises the customer. It’s regressive. I do wonder who comes up with such ideas and how they actually get through the process to go come into force. It seems backward that can happen yet the government can’t tackle airport capacity. Where are the subsidies for airlines to generate alternative fuels?
How can the government, especially the front bench, really understand the majorities day to day life when they do not live like the majority? Its a minority living in luxury making decisions for the majority, there can be no empathetic sense whatsoever.
So, come on George, we’re getting close to Christmas, give the travel industry a stocking filler.