An Abta-led campaign against APD has clear aims that can be achieved with a united industry, according to Abta chief executive Mark Tanzer.
Fair Tax on Flying seeks to keep the overall level of APD where it is today, cut the tax on premium economy fares to the same level as in economy and change the unfair banding system that taxes fares to the Caribbean more than to Hawaii.
The campaign also aims to have the cost of carbon emissions trading offset against the tax on fares when airlines join the European Union scheme next year.
Tanzer said: “The abolition of aviation tax is not going to happen.”
So how would he judge success? He said: “A short-term win would be if APD remains at its current level [following the Budget].
“However, this is a long-term campaign.
“If we keep future increases down, that would be a success. If we get the banding structure sorted out that would be a success. And if the costs of emissions trading are set against APD, that would also be a success.”
But he said: “If we end up with £3.8 billion taken in tax from flying in 2014-15 we will have failed.”
Treasury forecasts anticipate the revenue from APD or an equivalent tax hitting between £3.6 billion and £3.8 billion a year by 2015 – more than 50% up on today. These forecasts do not include the costs of emissions trading, which are likely to rise sharply after beginning relatively low when the scheme is introduced next year.
Tanzer said: “Emissions trading will mean additional costs. There will be a carbon cost that [at the moment] will not be set against the cost of APD. We support emissions trading – it will drive the use of more efficient aircraft. But the costs should be included in the overall tax take from aviation.”
However, he said: “The biggest success would be to build public awareness. Our survey shows people think the tax on flying is too high, but they don’t know how much it is. The tax is not transparent. We aim to let consumers know what they pay.”