The government has ruled out a fresh review of Air Passenger Duty (APD) but will look at enhancing consumer protection.
Aviation minister Baroness Vere rebuffed calls to reduce or re-examine APD when she addressed the Airlines 2022 conference in London on Monday.
She told aviation leaders: “We just looked at Air Passenger Duty, so we won’t be looking at it again.”
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The minister added: “The aviation industry has benefited from not being taxed on fuel so there are benefits to it.”
She called for “a grown-up conversation” on investment in sustainable aviation fuel (SAF) production, saying: “Some of these SAF plants could be hugely profitable and I want to see the rewards go to the right place.
“We need a conversation on who pays for this – the industry and consumers or taxpayers?”
However, she commended the aviation industry for its commitment to becoming ‘net zero’ on carbon by 2050, telling the conference: “I cover maritime as well and I wish the maritime industry had the same sort of net zero plan that aviation does.”
Baroness Vere argued: “There is work to do around consumer protection. It doesn’t feel like this is in its final place. The sector had to rise to some huge challenges over the summer and one of the scars of is that it suffered a a downer in the eyes of some travellers.
“One of the challenges over the summer was with services for passengers with reduced mobility (PRM).”
She noted: “European air traffic control has also been one of the challenges. Fingers crossed for next summer if we continue to have challenges with Europe’s air traffic control.”
Baroness Vere was appointed aviation minister last month after a brief stint in the role in 2019. She told the conference: “I’m new but I know something about aviation. I will always listen to you. I won’t always agree with you.”
The minister promised: “We will look at [airport] slot reform but I’m not saying there will be massive reform.
“We have to do something about the quality of ground handling – so many of the public don’t understand what ground handlers do and blame the airlines and airports.
“And airspace modernisation would be good on so many levels so we will be focusing on that.”
She added: “I’m pleased we have returned to a period of calm government. The Aviation Industry Council is going to be a key forum for engaging with the government. Most of what I want to do for aviation does not really need the government to do anything. It’s about collaboration.”
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