The biggest scheduled airlines flying from the UK will today launch an unprecedented alliance to campaign against Air Passenger Duty (APD).
The bosses of easyJet, Ryanair, British Airways’ parent International Airlines Group (IAG) and Virgin Atlantic will launch a campaign against APD under the slogan Axe the Tax.
The four have come together ahead of the Chancellor’s Autumn Statement on November 29, when it’s feared George Osborne will announced a sharp rise in APD from next April. The Chancellor’s Budget Statement in March suggested a double-the-inflation-rate rise next year after a freeze this April.
The four chief executives – Carolyn McCall of easyJet, Willie Walsh of IAG, Michael O’Leary of Ryanair and Steve Ridgway of Virgin Atlantic – are due to unveil the campaign at the London Stock Exchange this morning.
They will emphasise the damage they believe the high rate of APD is inflicting on the UK economy.
All four airlines have consistently opposed the tax and BA and Virgin Atlantic were prominent members of the Fair Tax on Flying campaign organised by travel association Abta. But easyJet and Virgin Atlantic, in particular, have often put out conflicting messages.
Virgin has argued for an increase in APD on short-haul flights to allow a cut in tax on long-haul, while easyJet has claimed passengers on short-haul flights are subsidising long-haul passengers through their APD contribution.
The UK levies the highest rate of aviation tax in the world. However, the Treasury has already indicated it is not likely to reduce the rate any time soon. Economic secretary to the Treasury Chloe Smith told MPs last month: “I cannot promise APD will be cut in the near future.”
The Chancellor is expected to announce the results of a review of the tax following an industry consultation earlier this year.