Tui Travel says it is disappointed by the lack of plans to reform Air Passenger Duty in today’s Budget speech.
The parent company of Thomson, First Choice and Thomson Airways welcomed the delay in an APD rise, the investigation into a more equitable APD banding system and further consultation on premium economy seating, but said: “We had hoped for more actions not more consultation.”
In a statement, the company added: “APD has needed urgent reform for far too long and we expected the government to act further.”
The company also said it wanted to see more detail behind the government’s decision not to introduce a per plane tax, cited by the government as illegal in international law, as it continues to believe this type of tax would be “fairer and more environmentally effective than the current APD system”.
On the announcement the government will continue to look into ways to introduce a per plane tax, the company said: “We welcome the fact that the government will continue to work to address the legal issues.”
The company also called for money raised by APD to be used specifically for research and development on environmental projects, such as aviation bio fuels, after the government again referred to APD as an environmental tax.