New passenger tax off to flying start

The first of two rises in the Air Passenger Tax (APD) got underway yesterday on the 1st November. The first part will rise relatively un-noticed as it will go up by just nominal amounts for short-haul flights, from £10 to £11. Others will notice a change in their fees though, as medium-haul rises by up to £10 per flight and long haul by £15. All these fares are for passengers in economy– tax for premium cabin pasengers will rise by even more.

The new APD is worked out by how far the passenger is travelling, in theory. For those leaving the UK, they will be charged a set rate based on the distance between London and the capital of the country they are travelling to. However, if a passenger was flying to Hawaii there tax would be the same as another person’s tax flying to New York. Campaign groups have argued that the new system is flawed as it was brought in as an environment charge, but what it will do is just hike up the price for the average citizen that wants their summer break.

Travel agents, tour operators, ferry companies and other businesses to do with the travel industry have spoke out and are looking for the British public to support them in abolishing this new taxing system. They fear that London will lose its international status as a hub, as people opt for Schipol Airport as tax there has been suspended during the economic turndown. Amazingly, as this tax was brought in for green reasons, it comes as a surprise that passengers on private jets will be exempt from paying any such tax. November 2010 will the second rise to this tax and potentially the loss of more business for the UK.