TravelMole
Agent

Advantage boss speaks out on new APD charge

Friday, 12 October 20073 min read

It remains unclear if government plans to change Air Passenger Duty from a per passenger to a per flight charge will be fair for travellers.

In its pre-Budget report, the Treasury said from November 1 2009 it will charge APD per aircraft, instead of per passenger (see previous TravelMole stories).

John McEwan, chief executive of agency consortium Advantage, said: “On first impression I’d be interested to know how the airlines will charge the tax they propose?

“Will they equally divide it amongst all passengers on the aircraft – in which case lower load factors will become more expensive for the passenger – or will they reward more modern aircraft with lesser tax that older models?”

He added: “Until we have more details – which will no doubt include not only the government but the Civil Aviation Authority and the airlines – we will not know if this is a fair system for the customer.

“However, originally, Air Passenger Duty was seen as an income generator for the government and these new charges seem more focused on rewarding airlines and companies who are increasing their attentions to becoming ‘greener’.

“For our business travellers, we do not believe they will necessarily be hugely affected by this, as they will be passing their cost onto consumers as part of the cost of sale.”

by Phil Davies