Europe

BA chief warns excessive taxes could bankrupt airlines

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BA chief warns excessive taxes could bankrupt airlines

At a keynote speech at the Caribbean Tourist Organisation Leadership Strategy Conference in Barbados, British Airways chief executive Willie Walsh warned that excessive taxes could force some airlines out of business.

Walsh was aiming his comments at the UK government, which increase in air passenger duty comes into effect on November 1.

"Aviation is a low-margin industry at the best of times," Walsh told delegates. "If surpluses are swallowed up in taxes, airlines will not only be unable to invest in cleaner, emissions-reducing aircraft, they will ultimately go bankrupt and the social and economic benefits they bring will disappear with them."

Walsh said that traffic from the UK to the Caribbean will be affected directly because of this steep increase in APD. He warned if these taxes kept rising, BA would need to consider cutting back its growth in services to the region.