The Government’s plan to switch from Air Passenger Duty to an environmental tax on aircraft has drawn a mixed response from airlines.
EasyJet welcomed the move, having lobbied strongly for it. But Ryanair dismissed it as “just another tax on passengers” and British Airways called for the replacement tax to be ditched as soon as airlines join a European emissions trading scheme in 2011.
BA stands to be hit harder by the tax than airlines with younger and less-polluting fleets.
Details of the charge, to be introduced in November 2009, have yet to be finalised following consultation.
But it will be related to emissions – based on the type and age of aircraft and length of route – rather than a tax on passengers. It should apply to cargo flights and business jets which are excluded from APD.
Regional carrier Flybe called on the Treasury “not to penalise isolated areas”. The airline’s chief commercial officer Mike Rutter instead called for all aircraft older than 15 years to be banned from the UK.
The Government also announced the higher rates of APD would apply to business-only flights from November 2008 until introduction of the new tax.
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