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Airline CEOs Respond to the UK Budget APD Increases

Airline CEOs Respond to the UK Budget APD Increases

Air Passenger Duty is to continue increasing in the UK despite the travel industry’s pleas for Chancellor George Osborne to abolish the aviation tax. APD will rise “in line with inflation” from April 2014 in addition to the 2% increase already scheduled for next month. George Osborne

The lowest rates of APD for journeys of less than 2,000 miles will remain at £13 per passenger for economy and £26 for all other classes of travel over the next two years, but all of the other three bands will go up in April 2013 and again in April 2014.

The chief executives of IAG, Virgin Atlantic, easyjet and Ryanair said in a statement: “We are very disappointed that the Government’s tax on flying, already the highest in the world, will increase yet again this year and next. These rises in Air Passenger Duty show the emptiness of rhetoric on boosting exports to emerging economies and building the most competitive tax system in the world.

“Increasing this alarmingly uncompetitive tax on business, trade, and inbound tourism beggars belief when the evidence clearly suggests that abolition would deliver growth, create 60,000 jobs and pay for itself through higher receipts from other taxes.”

 

Band A (0 – 2,000 miles from UK, includes Europe)

From 1st April 2013:

Economy: £13 (no change)

All other cabins: £26 (no change)

 

From 1st April 2014:

Economy: £13 (no change)

All other cabins: £26 (no change)

 

Band B (2,001 – 4,000 miles, includes North America and Middle East)

From 1st April 2013
:

Economy: £67 (up £2 year-on-year)

All other cabins: £134 (up £4)

 

From 1st April 2014
:

Economy: £69 (up £2)

All other cabins: £138 (up £4)

 

Band C (4,001 – 6,000 miles, includes South America, China and India)

From 1st April 2013
:

Economy: £83 (up £2)

All other cabins: £166 (up £4)

 

From 1st April 2014
:

Economy: £85 (up £2)

All other cabins: £170 (up £4)

 

Band D (over 6,000 miles, includes Australasia, Malaysia and Indonesia)

From 1st April 2013:

Economy: £94 (up £2)

All other cabins: £188 (up £4)

 

From 1st April 2014:

Economy: £97 (up £3)

All other cabins: £194 (up £4)

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NEIL STEEDMAN has been a trade journalist, copywriter, editor and proofreader for 52 years, and News & Features Editor for ‘Irish Travel Trade News’ for the past 42 years.

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