Darling receives little support over ADP changes

The aviation industry has responded with dismay to the government's decision to impose ascending air passenger duty (ADP) fees based on the distance travelled to and from the UK.

The proposals, which were made by the Chancellor Alistair Darling in the pre-budget report, will mean that tax on flights to countries such as Thailand and South Africa will increase by more than 50 per cent in two years time.

Airlines widely condemned the decision with easyJet chief executive Andy Harrison suggesting that this was a "bodged-up reform".

He said: "All parties agreed that APD needed to be changed to a tax on planes not people, but now the government has succeeded in bodging-up the reform of an already bodged tax." Virgin Atlantic also came out to criticise the chancellor, suggesting that the government is penalising "hard-working middle-class families", which are already feeling the effects of the recession.

Currently, APD is levied at £10 for passengers flying economy class to European destinations and £40 for those going further.

However, these changes will see taxes for services between the UK and Europe rise to £12; US travellers will face a charge of £60; and long haul visitors flying over 6,000 miles will have to pay £85.

Following the chancellor's announcement, Ryanair claimed that it could be forced to scale back its services from Liverpool John Lennon Airport, as it believes that fewer passengers would now book flights in the UK.

The low-budget carrier, which is particularly susceptible to any cost increases, also said that the move will "devastate UK tourism". British Airways, the UK's flag carrier, also disliked the plans, indicating that they would hurt its long-haul business, which is "a further blow to the industry at a time when it is reeling."

A number of other organisations joined the chorus of disapproval over the APD hikes, with the trade association UKinbound expressing fears that it will encourage visitors to choose other destinations.

Mary Rance, UKinbound chief executive, said: "International travellers should be encouraged to holiday here ... Instead the government is imposing higher taxes on long haul visitors and discouraging them to visit."

Mr Darling justified the increases as a way of reducing carbon emissions, however environmental movements said that the decision was undermined by the scrapping of a flight tax, which had been proposed earlier.

The World Development Movement pushed the final nail in the coffin of the plans by saying that it was bad news for "the UK taxpayer, the environment and the world's poor."

© Adfero Ltd