Airlines have attacked the UK government's plans to increase the rate of air passenger duty (APD) by as much as 10% next year.
Chancellor George Osborne's autumn statement confirmed the rise in APD, initially set out in the March budget, would take place from 1 April and forecast that the government would recoup £2.6 billion ($4.06 billion) from the tax in 2011-2012 and £2.8 billion the following year.
The chief executives of EasyJet, Ryanair, International Airlines Group and Virgin Atlantic all voiced their dismay at the increase in a joint statement which accused Osborne of scoring an "own goal" against UK economic recovery.
"APD has no international parallel and has already cost the UK economy 25,000 jobs - that is what the government should focus on," they said. The airline chiefs called on Osborne to commission an independent study of APD's overall economic value, which they said they said would confirm its negative impact on UK GDP.
The Board of Airline Representatives in the UK also criticised the increase, a decision which its chief executive Mike Carrivick said was completely at odds with the chancellor's wish to invest in the transport infrastructure. "Air travellers are being milked yet again and used as a soft target to prop up Treasury coffers," he said
Source: Air Transport Intelligence news