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Jetsetters 'will welcome tax on private flights'

Wednesday, 23 March 20113 min read
Jetsetters 'will welcome tax on private flights'

Online booking platform for private flights, Privatefly.com, says the industry will welcome a tax on corporate jets.

Chief executive officer and founder of PrivateFly.com Adam Twidell said: “I believe private jet passengers would accept the need to pay APD which would add a relatively small increase to their costs, based on the current ‘per passenger’ levy.

"Our average passenger payload is 2.8 per flight, so the impact on a return flight from London to Paris would be to increase the cost overall by 3.5 percent (£134.40 on a typical £3,900 return journey). Or by 2.5 percent on a longer journey, such as London to Cairo (when the increase would be £672 on a typical cost of £26,900).

“Coming out of recession, the sector is embracing the need for more transparency and new ways of operating. Introducing APD, or another fair system of taxation, for private jet flights is just one way in which it is moving into line with other forms of transport and integrating with the travel industry as a whole. This includes making private charter flights more widely available through travel agents and providing online aggregation and booking.

“VIP service, privacy and comfort are still very much part of private aviation’s appeal, but the stereotype of the ‘fat cat’ private jet user is largely a thing of the past. It will be interesting to see whether APD or another relevant taxation system follows from the consultation process. I do believe this will be welcomed by the vast majority of industry players.”