EasyJet is hoping a threshold on fares may be set to help low-cost airlines cope with the increase in domestic Air Passenger Duty.
The move follows the European Commission’s decision to force the UK to impose a tax on the return leg of journeys because the current system is in breach of single market law.
The Government pledged that they would counter the increase by reducing the tax for low-cost flights.
EasyJet said the threshold would be £120 to enable passengers buying cheap tickets to pay £8 each way. This still means charges rise from the current £10 to £16.
Fares over £120 would be liable for a £10 fee each way.
However, chairman of the F-Air Passenger Duty for All campaign Richard Tobias warned the change could go against EC rules that bar one rate applying to the UK and one for the rest of European travel, which would still be subject to the £10 charge for outward flights.
Customs and Excise refused to comment on EasyJet’s claim but confirmed low-cost flights would have a reduced APD rate for domestic services and flights from Scottish Highlands and Islands would be exempt from APD.
Campaign chairman Richard Tobias will meet the Treasury’s financial secretary Stephen Timms to put forward the industry’s case for restructuring APD.
Customs and Excise is believed to be planning to charge passengers £8 APD each way on domestic low-cost flights instead of the single £10 fee currently levied.
Tobias said it was unlikely he would be told what chancellor Gordon Brown was planning in his spring budget for APD but hoped for a meaningful discussion.
He said:”We will discuss workable options with the Treasury which the industry can work with.
“What we can say is that the Treasury understands the concerns of the industry and maybe we will be in a better position to see what it is going to do.”
The main topic will be what the Government’s plans are for APD on domestic flights. If the Government implements the EC demand, it will boost Treasury coffers by an extra £60m.