The rise in passenger tax by the UK Government from November 1 has the potential to cause thousands of job losses, say UK airlines. The British Air Transport Association has warned that the significant rise will make UK passenger tax the highest in Europe and that Britain will be put at a huge disadvantage in the aviation industry. BATA chief executive Simon Buck said: 'This is the most anti-aviation Government in post-war Britain.'
The 50% increase means a family of four flying economy to the Caribbean will pay £300 in Air Passenger Duty - up from £200 at present. In classes above economy, for the same family, the duty rises from £400 to £600.
Airlines fear passengers will opt to avoid flying via the UK to avoid the tax – a trend seen in the Netherlands when it imposed a tax rise but promptly removed it once passenger opted to fly via other European countries. It is this which airlines say will threaten UK airlines and Heathrow’s position as the premier airport in Europe.