Aviation industry likely to suffer increase in Air Passenger Duty
UK & Ireland airlines have asked UK ministers to halt the rise in APD. The rates, which apply to all flights originating from the UK and was introduced in 1994, were originally between £5 and £40, but now equate to an extra £17 – £120 per ticket.
Determined by destination, searing class and other factors the hike in prices could adversely affect the market in the UK – further making it an unattractive location for airlines.
An official from the Treasury told reporters that the APD had been frozen in 2011 and added that the UK did not charge VAT on air tickets, unlike many other countries.
However environmental groups continue to defend the APD, citing that its revenues go toward fighting climate change. Richard Dyer from Friends of the Earth said that ministers must now stand firm in the face of ‘unfair lobbying’ from the airline industry