Low-cost carrier appeals for new political approach to aviation taxation
EasyJet has today (18 September) launched an impassioned plea for a new political approach to the aviation industry.
Following hard on the heels of the UK Conservative Party”s unveiling of its tax proposals for the sector, easyJet has published a report on its own tax proposals, as well as take out a series of national newspaper advertisements.
The timing is no coincidence either. The major political party conference season is in full swing and the ads will run for their duration, as well as appear on easyJet seatbacks.
At a London press conference today, easyJet CEO, Andy Harrison, mounted a vigorous defence of his airline”s environmental performance, as well as calling for a radical new approach to aviation taxation that takes into account aircraft efficiency.
”We recognise that global warming is a clear and present danger, [but] aviation generates an enormous amount of wealth, particularly for the island of the UK,” he said.
”The environment is too important to be left to the pub-style slogans that we are hearing at the moment. Aviation has already delivered huge improvements in technology and one of our Airbus A319s is 20% more efficient than an MD-80 and 60% more efficient than a Trident.”
Responding to the conundrum of how Harrison could square the circle of ever-increasing air travel versus the need to reduce CO2 emissions, the easyJet CEO was in robust form. ”If you get the right tax system, it will encourage a more rapid aircraft substitution,” he said.
”It is possible to have growth in aviation with an absolute reduction of emissions ” we are trying to challenge simplistic assumptions.”
This theory of substitution is what is driving easyJet”s philosophical approach to taxation; specifically the carrier wants the current Air Passenger Duty (APD ” netting the Exchequer some ”2.4bn) scrapped in favour of a tax based on aircraft type and distance travelled.
Any such tax would encompass all types of UK aviation for the first time and, easyJet believes, encourage airlines to fly only environmentally-efficient aircraft.
Harrison added that easyJet had made its proposals known to the UK Treasury and opposition parties, but that ”it is very hard to know what the Treasury response is.” Potentially, there could be around 15 different tax bands, reflecting varying aircraft types.
And, speaking in front of his airline”s prototype ecoJet design, the easyJet CEO said that as soon as new aircraft technology became available, perhaps around 2015, his airline would be at the head of the queue to buy it.