Airlines are fighting to the end as more than 25 industry leaders urge the Government to re-think its APD increase just days before the Budget.
The group, including British Airways’ Keith Williams, Unite’s Len McCluskey, Thomas Cook’s Ian Ailles and American Airlines’ Thomas Horton, is asking for an independent study of APD’s overall economic value.
It describes the 8% increase due to be confirmed in Wednesday’s Budget as "short-sighted and ill-considered and will place the UK at an even greater competitive disadvantage."
The statement, backed by UK and overseas airlines as well as unions, agents and tour operators, reads: "We, the undersigned, are puzzled as well as disappointed that the Government plans a double-inflation increase in Air Passenger Duty (APD) this year.
"There will be both a huge increase in APD and that there are no plans to offset the cost of the new Emissions Trading Scheme for passengers. This means there will be a double tax increase for passengers this year. It goes against common-sense, economic logic and continues the tax discrimination against air travellers.
"Until recognition is given to the immense value derived to the UK economy from air travel, and a more equitable tax regime is established, APD will continue to inflict economic damage to the industry and the UK economy."
The statement follows the publication of research last week by the World Travel & Tourism Council (WTTC) which found that removing Air Passenger Duty would result in an additional 91,000 British jobs being created and £4.2 billion added to the economy in just 12 months.
The Government’s planned APD rise is due to come into force on 1 April.
By Diane Evans
