UK APD levels “a blow to our national pride”
Published: 07/03/2013 - Filed under: News »
The CEOs of Easyjet, Ryanair, Virgin Atlantic and International Airlines Group (IAG) have reacted to a report by the World Economic Forum showing the UK has one of the highest levels of aviation taxes.
The WEF report shows the UK ranked 139 out of 140 in terms of aviation taxes, “rubbing shoulders with countries like Chad, Senegal and the Dominican Reupublic”.
In a joint statement Willie Walsh, CEO of the IAG, Carolyn McCall, CEO of Easyjet, Michael O'Leary, CEO of Ryanair and Craig Kreeger, CEO of Virgin Atlantic said:
“It’s hard to find another comparable table on a key measure of international competitiveness which shows the UK to be trailing the rest of the world.
“This isn’t just a blow to our national pride but demonstrates the unjustified level of Air Passenger Duty and, following the recent PWC report, provides further evidence that the Chancellor must take action in the Budget on this destructive tax.
“The PWC report highlighted the critical role that aviation plays as an engine of economic growth for both international commerce and tourism.
“It confirms that abolishing APD would provide the UK economy with a GDP boost worth at least £16 billion in the first three years, generating enough extra revenue from other taxes to give the Treasury a net gain and resulting in almost 60,000 new jobs in the UK.
"We call upon the Chancellor to use the forthcoming Budget to remove APD to stimulate economic growth and create jobs.”
The new Datazone section in the March issue of Business Traveller also takes a look at UK APD levels in comparison with other European countries – subscribers can view this graphic online here.
JulianDent - 07/03/2013 15:53
As a consultancy selling our services to clients abroad (100% of our income is earned abroad), APD is a cost that is added to our fees and expenses. As a result it makes us less competitive than a competitor who can fly from countries other than the UK.
It is worse than that, as it means that we increasingly partner with local associates, analysts etc rather than bring our own team in from the UK. Therefore some 30 to 40% of the fees we generate gets paid to people based in our clients' markets, and not the UK. This represents about 3 to 4 jobs that we haven't created, entirely down to the effect of APD.
Of course, if anyone in any of the political parties had ever had a real job that involved having to compete for business in a global marketplace in order to make payroll, they would understand this. Sadly, they just see an easy tax to collect and increase ad hoc.
Binman62 - 08/03/2013 00:04
Complaining about paying £184 in APD on a first class fare to Australia when the carrier then adds £489 in fuel surcharges is not rationale. The bigger problem is fuel surcharges not taxation. When you reduce or eliminate that then we can work on taxes.
TerryMcManus24 - 08/03/2013 17:44
Agree but got to start and highlight the "rip offs" somewhere.
Airlines say the “fuel surcharge” is an attempt to make their fees and charges clearer to customers but as we know its simply their idea of an add on to show /see how much the carrier is allocating for fuel.
This surcharge is just a clever tactic to give us the impression that this tax is unavoidable.
It is NOT a government-imposed , but just an optional fee, added and collected by airlines to help recover fuel costs and stem losses...nice little earner...ensures profits...
...Bit like the way banks behave
AnastasiaBeaverhouzen - 08/03/2013 18:03
I still think APD is utterly unnecessary - fuel surcharges with rising prices inescapable, but self imposed damage from our own government, not helpful.
MarcusUK - 09/03/2013 16:23
The problem, is every Airport charge, the security Companies, Airlines fuel surcharges, as well as taxes, are making an Ex LHR returns to Asia £4-500 more on a return flight to BKK for eg.
A " Z" Class business fare on the same Airlines from CDG, AMS saves you this much each return trip.
But if you return into the UK then these charges are little as 10% of leaving LHR!
Also note, Fuel surcharges are not charged on some Airlines like VS, one way into LHR! Why?
If you use your miles, it strongly devalues them, whatever class you travel, but more so for an economy ticket.
It is short sighted, ignorant Government policy to continue, and even raise Government taxes. Flyers have a clear choice, and it is more and more NOT the UK for long haul travel. Hence Schiphol and The Dutch Companies, are the prime beneficiaries at the moment.
ADD A COMMENT »
Air France-KLM orders 25 A350-900s 19/06/2013
The deal was signed at the Paris Air Show in the presence of the chairman and CEOs of Air France-KLM Group and Airbus — full story »
Hotel check: One Leicester Street 19/06/2013
The five-floor boutique property reopened in May after being rebranded and refreshed – it occupies what was formerly the St John hotel in London's Chinatown — full story »
The carrier will receive delivery of its first aircraft with a business class cabin in August and its inaugural flight is scheduled for October — full story »