Air passenger duty will be payable by airlines rather than passengers from November 1 2009, according to the Government’s pre-budget report.
The move is part of plans to ensure the UK plays a leading part in the responding to climate change, announced by chancellor Alistair Darling yesterday in the Government’s Pre-Budget Report and Comprehensive Spending Review.
Older aircraft will be charged more than newer aircraft with denser seating, he said.
“A consultation will consider ways to make aviation duty better correlated to distance travelled and encourage more planes to fly at full capacity. In introducing this duty, the Government will also take into account the impact on freight and transit and transfer passengers, consistent with its wider economic and social objectives.”
In advance of the introduction of a per plane duty, APD rates will be frozen at their current level for 2008-09.
The Government will also ensure passengers on business class only flights are liable for the standard rate of APD.
Easyjet chief executive Andy Harrison said: “A structure that taxes a passenger in the newest, cleanest aircraft the same as someone in an old gas-guzzler cannot be allowed to continue. It is right to tax emissions, not passengers.”