The new Budget has started to address the “failing competitiveness” of the British aviation sector, but “much more” must be done, according to a global aviation chief.
Giovanni Bisignani, CEO of the International Air Transport Association (IATA), welcomed today’s announcement that Air Passenger Duty (APD) will not rise until next year.
He also welcomed the Chancellor’s decision not to convert the per passenger duty to a per plane tax, “which would have eroded UK competitiveness”.
“This is good news for Britain, its businesses, visitors and its holiday-makers. I congratulate the Chancellor on his wise decision at this critical time of rising oil prices,” he said.
However, Bisignani questioned why, as an island nation that relies heavily on air transport for connectivity, the UK remains one of the most heavily taxed nations in terms of air travel duties.
“Even without the planned increase, the UK collects more than GBP 2 billion pounds annually in the name of the environment through APD. That is enough to offset the entire annual carbon footprint of the UK aviation sector four times over,” he said.
“Aviation supports 1.5 million jobs and GBP 82 billion in economic activity in the UK. Moreover aviation has a global commitment to cap its net emissions from 2020 and cut them in half by 2050.”
Bisignani called on Chancellor George Osbourne to abandon APD completely: “If the Chancellor’s goal is to restart the economy, punitive taxation of this environmentally responsible employer and economic catalyst must stop.”
www.iata.org