Holiday firms warn over 55% Air Passenger Duty rise

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Air taxes are to rise by up to 55% on Monday, making some trips unaffordable, the travel industry has warned.

A family of four flying in economy to Australia will now pay £340 in total taxes - an extra £120.

The same family to the US will pay 33% more Air Passenger Duty (APD), up £60 to £240. APD on premium class fares is double that of economy.

Sir Richard Branson's airline Virgin Atlantic said the rise would put annual family holidays out of reach for many.


Virgin Atlantic chief commercial officer Julie Southern told the BBC: "Air Passenger Duty has risen three times in recent years, and what we're saying very clearly to the government is 'enough's enough'.

"This is not just about people travelling on holiday, this will also affect tourists coming to the UK who will pay this tax on departure."


"I think these taxes are a disgrace. I don't think they can be justified at any level”

Willie Walsh British Airways chief executive

"We know that tourism is a huge driver of economic growth in the UK, so we really shouldn't be disincentivising people from visiting us."

British Airways chief executive Willie Walsh said the increases would cost BA an extra £100m and put more pressure on ticket prices.

He said: "I think these taxes are a disgrace. I don't think they can be justified at any level.

"My concern around the taxes is the damage that they're doing to the UK economy.

"The government can clearly identify how much money they're raising but I've challenged the Treasury to calculate how much the economy is losing out as a result of making the UK a much more expensive place to do business."

Travel industry body Abta is continuing to lobby ministers in protest at the duty rises.


The cost of APD for flights of less than 2,000 miles in economy class will remain at £11, with duty on premium tickets frozen at £22.

For journeys of between 2,001 and 4,000 miles the price will be £60 in economy class and £120 for other seats.

For journeys of between 4,001 and 6,000 miles, the price is £75 in economy and £150 in premium classes. And flights of more than 6,000 miles will cost £85 and £170 respectively.

Tax rise increases

* Band A (0-2,000 miles) - 9%
* Band B (2,001-4,000 miles) - 33%
* Band C (4,001-6000 miles) - 50%
* Band D (more than 6,000) - 55%

The mileage limits are just a rough guide as, for example, all trips to the US fall within one band, while those to the Caribbean are charged at a higher rate.

It means that people flying eight hours to Barbados, for example, will pay £15 more tax - £30 for those in premium seats - than those heading four hours further to Los Angeles.

Bob Atkinson, from the travelsupermarket website, said: "The tax bands aren't consistent. APD is a flat tax and is therefore regressive. The tax should apply to the actual mileage or as a percentage of the total paid.

"There needs to be a complete revamp of the APD scheme. It should be replaced by a per plane tax so that we can then see the environmental efficiency of each airline and their aircraft."

The government has cited environmental reasons for recent APD rises, saying they are an important contributor to the public finances, and help it achieve its green goals.

APD, an airport departure tax, is automatically added to the ticket price when it is booked.

BBC News - Holiday firms warn over 55% Air Passenger Duty rise
 
Also dont forget that most airlines only allow 1 bag now at 23kg, Any more tahn 1 bags is charged extra for example I think on BA it is around £30 extra per bag
 
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