The anomaly over the two-tier rate of Air Passenger Duty has been recognised by the Government in its Budget.
Chancellor Gordon Brown said the current system of APD, where premium economy passengers pay the same higher rate as business and first class passengers, might not send the right environmental signals.
But he says the Government would only be prepared to make a change “on a broadly revenue neutral basis”.
The Government is now seeking further discussions with the travel and aviation industry over the anomaly.
The Federation of Tour Operators has welcomed the Government’s acknowledgement of the distortion, which came under item 7.85 in the Budget speech.
FTO spokesman Graham Lancaster said: “This is one of the areas we have been lobbying them about, and we look forward to further discussions. “
Last month, the FTO launched a legal challenge against the Government over APD.
“There is not a precise timetable, but the procedure is running its course,” said Lancaster.















