Fresh hope for £1 levy

THE £1 air passenger levy could finally become a reality, following lobbying efforts by ABTA at this week’s Labour party conference.

As Travel Weekly went to press, lobbyists Jefferson Communications, employed by Newman Street, appear to have persuaded an MP to table the amendment at the final reading of the Civil Aviation Bill on October 11.

Last week, the CAA strongly backed the introduction of the levy when it published its final advice to the Government on air traveller and package holidaymaker protection.

Of the four proposals investigated – a levy on all flights, keeping the status quo, increasing emphasis on package travel regulations, and repatriating all passengers but only refunding ATOL-protected tickets – the CAA said a £1 levy offers the best cost-to-benefits ratio.

CAA consumer protection group director Richard Jackson said a £1 levy, collected with the Government’s air passenger duty, is the simplest way to create a level playing field for airlines and tour operators, and protect all airline passengers regardless of booking method.

It would be levied on all UK-originating passengers and amass £250 million within three to five years, eliminating operators’ bonding costs worth up to £100 million annually, he said.

“This is economically the most logical thing to do,” Jackson said.

“We view this as a sensible consumer protection proposal, so it should be rationally debated by ministers.”

Federation of Tour Operators director-general Andy Cooper has questioned how airlines could oppose the proposal when credit-card fees typically cost consumers between £2.50 and £6 per transaction.

Lobbying company Jefferson Communications worked on behalf of both ABTA and the Federation of Tour Operators this week at the Labour Party conference in Brighton.

If a Bill amendment is not tabled at the October 11 reading, the last opportunity for change will be during its House of Lords reading in late autumn.