THAT airlines need to recoup lost income by the proposed ban on duty-free sales within the European Union is not disputed, but the manner in which they are now doing so is. Let’s look at the facts.
l The duty-free sales ban is planned from July 1 but that deadline may be extended.
l The ban applies only within the EU, so no loss of income would be felt on other routes.
l Duty-free sales have never applied to UK domestic flights
l The cost of using passenger facilities at an airport have always been there, and are a normal cost of business.
l Airlines don’t impose taxes, governments do, yet they are passing off the passenger service charge as a tax.
l Airlines, with the assent of the Civil Aviation Authority, are already using the PSC ahead of any duty-free ban.
l Clients will no longer enjoy common-pricing on a route.
What is being allowed to happen is that airlines are injecting hidden price rises. They are also trying to establish the principle that standard business costs may now be passed on as additional taxes.
There will also be the abolition of common pricing on a given route, leading to a multitude of reticketing when travellers change their mind to the airport for which they have been ticketed. This will rebound on airlines’ own airport ticket desks.
The loss of profits from duty-free can not be so vast that all passengers leaving the UK must be levied an additional charge. It could also be argued the cost of fuel saved by not having to transport duty-free further erodes the loss of profit involved. It would be more credible if airlines increased their fares on the appropriate routes, and stated why this was so.
Michael R Carrivick
Managing director
Maersk DFDS Travel
London