Long-haul passengers are being disproportionately penalised on flights, according to Virgin Atlantic.
Passengers within the EU account for 81% of flights, but contribute only 35% of APD revenue – figures which demonstrate the need for change, according to Virgin’s chief commercial officer Julie Southern.
“The current short-haul rate is clearly not deterring people from taking flights to places where a quick and easy rail alternative exists,” she said.
“It is clearly not supporting the government’s environmental objectives.”
The airline is calling for short-haul passengers to pay more air passenger duty, to redress an imbalance with long-haul passengers.
APD rises in the last four years have seen the short-haul levy rise 20%, while the long-haul rate has gone up by as much as 50%.
Had the tax rates increased at the same rate, short haul flights would be contributing £222 million more a year, Virgin has calculated.
Virgin’s Southern has suggested a rate of £20 on short-haul flights, £8 higher than the current economy class levy.
“A new two band structure for APD with a £20 short-haul rate would redress a balance where families and business travellers flying further afield have plugged a £222 million tax gap,” she said.
“Our proposals would raise £650 million for an increase which is comparable with the fees that many low cost airlines charge to book flights with a debit card.”
www.virgin-atlantic.com