Green taxes draw mixed reaction from travel trade

The trade has broadly welcomed Government plans to replace Air Passenger Duty with a green tax on aircraft from November 2009.

The tax will relate to emissions – based on the type and age of aircraft and length of routes – and could apply to cargo flights and business jets which are currently excluded from APD.

Federation of Tour Operators director-general Andy Cooper said: “We welcome the concept with reservations. The tax should be based on emissions, not per passenger.”

But he expressed concern at Treasury expectations that the tax will produce an extra £520 million in revenue.

Co-operative Travel managing director Mike Greenacre applauded the move, but said: “The fear is these charges will result in higher ticket prices.”

EasyJet also welcomed the tax, having lobbied for it, with a spokeswoman saying: “We would like to see it a lot sooner than November 2009.”

But Ryanair dismissed it as “just another tax” and British Airways called for the tax to be ditched as soon as airlines join a European emissions trading scheme in 2011.

BA stands to be hit harder than airlines with younger, less-polluting fleets, and the tax will penalise carriers operating half-full flights. It could lead to a decline in frequencies and the axeing of some routes.

A Treasury spokesman confirmed: “It will raise taxes by £520 million and could increase the [total] duty on flights. Aviation is not meeting its full environmental costs and this is about sending the right signals.”