UK aviation industry slams soaring air tax hike

(BBC) The British travel industry has taken the baton from Caribbean nations and stepped up attacks on UK air taxes set to rise by up to 55% today.

The industry has warned that some trips to long haul destinations such as in the Caribbean will become unaffordable.

Those flying economy class to the Caribbean will each pay £75 (about $120) for the Air Passenger Duty (APD) – a 50% hike on the previous rate.

For APD purposes, the Caribbean has been put in Band C which means that passengers will be paying more to fly, for example, to Barbados which is only an eight-hour trip, than to Los Angeles which is a near-12 hour flight.

This is because the whole of the US has been put in Band B where APD rates are slightly lower.

The Conservative-led coalition government said the rises were set by the previous Labour administration, and reform was being considered.

Caribbean goverments have lobbied hard for changes, warning that continued hikes will damage their tourism-dependent economies.
‘Huge driver’

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.
There needs to be a complete revamp of the APD scheme

CP Travel, a London agency which specialises in Caribbean holidays, called the increase “serious”.

“The clients are finding it very difficult,” said Carlton Troutt, a spokesman for the company whose clientele is mostly Jamaican
“We have folks who planned to go the Caribbean and then changed to a cheaper tax to go to Europe.”