Abta and British Airways have set aside their differences on aviation tax to unite in a campaign against a further rise in Air Passenger Duty (APD).
The pair will head a coalition of the travel industry’s biggest names to oppose a fresh hike in APD in the Budget in March. The two had disagreed on whether to retain or replace the duty with a tax on aircraft – christened a Per Plane Duty (PPD).
Abta has previously backed a move to a PPD, as have Tui Travel, Thomas Cook and low-cost giant easyJet. BA has led opposition to a PPD by most other airlines.
The Treasury is due to announce the government’s proposals in the Budget statement on March 23.
Both coalition partners favoured scrapping APD before the general election. However, Chancellor George Osborne watered down that pledge in his emergency Budget last June when he promised only to consider proposals and consult on them.
BA general manager of regulatory and political affairs Jim Forster revealed the new partnership.
He told the annual convention of the association of UK inbound operators, UKinbound: “Abta hosted a meeting with BA and other airlines and we plan a campaign timed in line with the Budget.
Forster said: “We are working together as an industry. It hampered us [previously] that one set of airlines wanted a Per Plane Duty and the others to retain APD.
“No one wants any tax, but we wouldn’t get away with that. BA wants APD to remain. We recognise APD is damaging, but we believe a PPD would do damage to Heathrow as a hub and to the UK economy.”
Abta declined to comment on the campaign. But Travel Weekly understands the coalition will include the major leisure carriers and retail groups, with industry and destination representatives. A campaign will be launched ahead of the Budget.
Forster told Travel Weekly: “We want APD left as it is. We are concerned about the Caribbean and happy to look at banding changes provided the overall tax take does not go up.”
He said a Per Plane Duty would give passengers an incentive to fly long haul via Paris, Amsterdam, Frankfurt or Dubai rather than Heathrow.
Forster suggested the tax saving under PPD on a fare to Delhi from a UK regional airport might be as much as 16% via one of these hubs.