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Thu, Dec 10, 2009

UK Frequent Flyers Could Face Higher Taxes

Move Considered To Curb Airline Demand

As if higher fares, check baggage fees, packed airplanes, and ever-eroding service weren't doing enough to curb airline demand on their own, the British chairman of the Government's Committee on Climate Change has floated an idea that frequent flyers in the UK should be charged higher taxes than those who fly occasionally. Lord Adair Turner, the Committee Chair, unveiled the idea as one of several suggestions for restricting the growth of airline demand to no more than 60 percent over the next 40 years.

As the Climate Summit in Copenhagen continues, the UK is looking at ways to be sure that carbon emission produced by aircraft is no more in 2050 than it was in 2005, according to "The Telegraph." Along with a possible Frequent Flyer Tax, airlines could face an additional carbon tax for the fossil fuel they burn.

According to a study released by the Climate Change Committee, a Briton making just under $100,000 per year will fly an average of four times per year, while a person earning a little over $30,000 will fly just twice. "If you leave it entirely to a price regime, then people will be able to fly if they can afford it," Lord Turner (pictured) said. "We will have to see what our policy responses are and to examine whether we could increase the marginal cost of flying beyond two to three flights a year. I think there is a whole range of ideas people have floated. Could you have a tax which allows you to have a certain number of flights?"

The idea was slammed by Simon Evans, chief executive of the Air Transport Users Council. "I accept that there has to be a mature debate about mitigating our carbon footprint, but aviation should not be singled out," he told "The Telegraph." "People fly for a wide range of reasons and this would not only discriminate against people on low incomes but also would mean that people who have to fly for work would face higher charges because they have used up their allowance."

The aviation industry said new taxes were not the answer for curbing carbon emission. The industry contends that better air traffic management (NextGen and its European SESAR counterpart), more efficient airplanes, and alternative fuels will do the job without adding taxes and fees.

FMI: www.theccc.org.uk

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