Finally, some good news from government! You wait years for a cut in APD, then two come along at once.
George Osborne’s abolition of APD for children went further than anyone expected in cutting the tax for under-12s next May and under-16s the year after. It also kicked in sooner than anyone thought possible – so a pat on the back to industry coalition A Fair Tax on Flying.
For once, no one worried about a lack of 12 months’ notice – refunds for those already booked and lower prices than previously advertised are good messages for consumers going into January.
Of course, Willie Walsh is right to point out the chancellor didn’t go nearly far enough and Flybe is right about the double penalty on domestic flights (page 4).
But the fillip to family holidays is welcome, and Ryanair showed its new-found consideration for customers by offering refunds on children’s APD not just from May 1, but from the end of March.
“It all helps,” Tui Travel boss Peter Long told analysts as he reported results for the 12 months to September – another year in which Tui outperformed the market (page 6 and 71).
Long’s message that he has yet to see demand as a whole pick up is more sobering. Let’s hope the chancellor’s claim that incomes are now rising proves correct.
Europe’s Council of Ministers also acted quicker than most thought possible in the past week by agreeing a new Package Travel Directive. This has profound implications for online retailers (page 72) and the directive appears also to have dismayed Abta.
Expect to see a lot more on this in the new year.