A4A: 'Burdensome Tax' Depresses Demand,  Unfairly Penalizes Customers

The U.S. airline trade industry organization Airlines for America (A4A) has issued the a statement opposing the United Kingdom's increase to the Air Passenger Duty (APD) by 2.5 percent. The APD is the largest single tax passengers face anywhere in the world, with the increase, amounting to about $107 for economy tickets and $215 on all other cabins for flights to the United States.

"Increasing this already oppressive tax depresses the demand for air travel to and from the UK and unfairly penalizes airline customers," said A4A President and CEO Nicholas E. Calio (pictured). "Air transportation is an indispensable engine of economic growth, and if the UK wants to encourage travel and tourism spending, it should abolish--not increase--this tax."

The association says that increasing the APD is at odds with the UK government's stated goal of attracting an additional 10 million new passengers by 2020 and to enhance the competitiveness of the UK economy. A4A joins the 300,000 individuals and companies and 100 Members of Parliament in calling on the UK Government to urgently review the APD.

According to the U.K. Revenue and Customs website, the APD is a duty of Excise which is levied on the carriage, from a UK airport, of chargeable passengers on chargeable aircraft. It becomes due when the aircraft first takes off on the passenger’s flight and is payable by the operator of the aircraft. The amount due is dependent on the final destination and class of travel of the chargeable passenger.

FMI: www.airlines.org, HM Revenue and Customs