Virgin Atlantic has voiced concerns that the consultation on APD announced in today’s Budget does not look like providing relief for the Caribbean.
Reacting to the Budget announcement in which chancellor George Osborne announced a planned rise in November would not go ahead, the carrier welcomed the rejection of a per-plane alternative.
But it said it remained concerned proposed changes to the banding structure left the Caribbean in the most distant and costly category along with destinations like Sydney.
Virgin Atlantic chief commercial officer Julie Southern said: “We are looking forward to working with the government on this consultation.
“However, we are concerned to see that, despite the chancellor’s comments in his speech to Parliament, the proposed reforms will not provide any relief to the Caribbean.
“The current banding structure is not only unfair, but illogical as an environmental tax when journeys on short haul routes are effectively subsidised by passengers travelling further afield.”
Southern described it as “unsurprising” that the government had ditched a pledge to move to a per-plane version of the tax saying it would damage UK connectivity and its environmental credentials were unsound.
“Aviation is crucially important to British business and tourism alike, and it is great news that this role has been recognised.
Southern welcomed the decision to freeze APD this year but pointed out the high level of taxation the UK levies on aviation.
She added: “Although this move by the chancellor is a very welcome first step, Britain still has the highest air taxation of all European and G20 countries and APD receipts are forecast to increase by 1.4 billion in the next four years.“