Abta is preparing evidence to put to the government that will quantify the damaging impact of air tax APD on the UK economy as a whole.
The research is being carried out by the Centre for and Business Research, whose founder and chief executive Doug McWilliams was a speaker at this week’s Abta Travel Convention.
The convention heard from BA parent IAG chief executive Willie Walsh who launched a scathing attack on the coalition government and its policy on APD.
He demanded the tax be phased out, a stronger position than the one currently taken by Abta, which is calling for A Fair Tax on Flying in a well-supported industry lobbying campaign.
Mark Tanzer, Abta chief executive, said: “We had a long chat with Willie Walsh and I think our position is absolutely as one.
“Our view is not just about the impact of APD on tourism but on the whole economy. You cannot cut your way out of this recession you have to grow your way out.
“Trading and flying is the lifeblood of that growth and anything that the government does short term that suppressed aviation is just going to slow trade down altogether.”
“The government has got to see that putting up APD is absolutely counter-productive. It’s not a question of simply raising £2 billion because in doing so you slow the multiplier effect of trade.”
Tanzer said the CBR report will be ready “by the end of the year” meaning it is unlikely to be finalised in time for an expected announcement on APD by in the Chancellor’s autumn statement on November 29.
The Treasury froze APD this year at a cost in revenue of £145 million, however the 2011 Budget statement said: “The RPI [Retail Price Index] increase assumed in the forecast [for 2011] will be deferred and implemented alongside the April 2012 RPI increase.”
Another area Abta is keen to up its lobbying on is airport capacity, especially in the south east. Tanzer said the association had to make the case for more capacity.
“An in-principal refusal not to allow capacity increases in the south east seems to be bonkers. You have to think the easiest way in the short-term is to build a runway at Heathrow.
“When it’s operating at 98% capacity it doesn’t take a major problem to create huge delays and have aircraft circling round and round.”
Tanzer said he had sensed an “opening of the door” of airport capacity increases in recent comments from transport secretary Philip Hammond reported in the national press.