Luton airport air passengers hit by hike in long haul stealth tax
Luton airport air travellers are to be hit by massive stealth tax increases with long-haul holiday destinations being hardest hit.
BA chief executive Willie Walsh warns that the tax rise will be a 'crushing blow' to the aviation industry in the UK
Mr Walsh is calling for the increases to be reversed, claiming that rather than bolstering the economy by filling the Treasury's coffers, it will cost British business billions in lost revenue.
He said: 'Increasing APD is the wrong thing to do and I think it's going to have a negative effect on business and travel in Britain.'
The APD was officially introduced as a green measure to reflect the cost of flying on the environment, but the travel industry has called it a stealth tax to reduce the govt's overspending.
The tax currently generates £2 billion for the Chancellor's coffers each year. The new regime is expected to bring in £2.5billion, rising to £3.5billion by 2012.
Passengers now pay £10 APD on economy flights within Europe and £40 to destinations beyond, with premium seats taxed at double those rates.
The new charges will be split into four bands based on the distance between London and the destination.
A family of four travelling economy class to the Caribbean, band C, would have to pay a total of £200 in APD this November and £300 in November 2010.
Budget airline easyJet, said the APD will seriously hit its business. It is cutting flights at Luton airport and closing its operation at East Midlands airport, blaming increases to the APD and increases in airport fees.
To save yourself some money- why not book at Luton airport's only cheap, secure onsite car parking?
BA chief executive Willie Walsh warns that the tax rise will be a 'crushing blow' to the aviation industry in the UK
Mr Walsh is calling for the increases to be reversed, claiming that rather than bolstering the economy by filling the Treasury's coffers, it will cost British business billions in lost revenue.
He said: 'Increasing APD is the wrong thing to do and I think it's going to have a negative effect on business and travel in Britain.'
The APD was officially introduced as a green measure to reflect the cost of flying on the environment, but the travel industry has called it a stealth tax to reduce the govt's overspending.
The tax currently generates £2 billion for the Chancellor's coffers each year. The new regime is expected to bring in £2.5billion, rising to £3.5billion by 2012.
Passengers now pay £10 APD on economy flights within Europe and £40 to destinations beyond, with premium seats taxed at double those rates.
The new charges will be split into four bands based on the distance between London and the destination.
A family of four travelling economy class to the Caribbean, band C, would have to pay a total of £200 in APD this November and £300 in November 2010.
Budget airline easyJet, said the APD will seriously hit its business. It is cutting flights at Luton airport and closing its operation at East Midlands airport, blaming increases to the APD and increases in airport fees.
To save yourself some money- why not book at Luton airport's only cheap, secure onsite car parking?
Labels: london parking, luton airport, luton airport parking
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