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Entries in APD (6)

Wednesday
Nov022011

Manston: "Airports could go out of business"

Some regional airports could go out of business if the Government fails to recognise their important role in easing the nation’s capacity crisis. That's the warning from Manston Airport chief executive Charles Buchanan.

He argues that direct and immediate action is needed to resolve the short and long-term airport capacity shortages at Heathrow, Gatwick and Stansted where new runways have been ruled out indefinitely. In Manston's submission to a consultation on aviation policy, he urges the Government to look to existing regional airports to buy time for longer term plans to be explored.

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Saturday
Oct082011

Q: What DOESN'T connect George Best, John Lennon and Robin Hood?

A: Flybe

George Best is Belfast's airport, John Lennon is Liverpool's and Robin Hood is Doncaster's. Flybe used to have scheduled flights connecting them, but that was before their share price fell through the floor after their recent profit warning.

In Charles Buchanan's position, I would be rather by worried by the second paragraph of Flybe's statement...

Click to read more ...

Wednesday
Jul272011

(A) Fair Tax On Flying

What a difference a letter makes!

With the letter "A" in front, it's "an alliance of over 30 airlines, airports, tour operators, destinations and travel trade associations calling on the Government to make UK aviation tax fairer", i.e. the aviation industry calling for even more tax breaks. Click their logo to see their Facebook page.

Without the letter "A" in front, it's a group dedicated to "publicising aviation's REAL tax situation", i.e. pointing out how much we're all feather-bedding the aviation industry. Click their logo to see their Facebook page. Here's what they have to say:


Airlines pay no tax on aircraft fuel

Motorists pay 59p a litre in fuel duty + VAT at 20%.  Thus petrol tax is at a rate of approx 160%. Tax on aviation fuel is 0%.

Airlines pay no VAT

  • There is no VAT on airline tickets.
  • There is no VAT on the purchase of aircraft.
    Motorists pay VAT at 20% on the purchase of cars.
  • There is no VAT on the servicing of aircraft.
    Motorists pay VAT at 20% on the servicing of their cars.
  • There is no VAT on goods sold in airport duty-free shops or on meals served on aircraft.
    Motorists pay VAT on most goods and meals in motorway cafés.

Airports pay no tax on alcohol and tobacco

No tax is paid on drink and tobacco sold in airport duty-free shops. Tax on a bottle of whisky in the High Street is £6.66. Tax on cigarettes in the local shop is about 80%.

Airlines do pay air passenger duty

The total revenue from air passenger duty in 2011-12 is forecast at £3 billion.

The Treasury estimated in October 2009 that the loss of revenue as a result of no fuel tax and no VAT on airlines was at least £10 billion a year. With the increase in fuel tax and VAT since then, the figure must now be around £12 billion.

To achieve fair tax with motorists, air passenger duty would need to be quadrupled!

Thus, compared to car travel, air travel benefits from an annual tax subsidy of around £9 billion.

Wednesday
Jul202011

Air Passenger Duty

Special pleading for yet more handouts from the public purse.

Manston and a clutch of other regional airports are asking the Government to change the way that APD (Air Passenger Duty) is levied. The suggestion is that APD levels should "be set at a lower level for uncongested regional airports with significant available capacity to help alleviate congestion and improve the passenger experience at the main London airports."

Click to read more ...

Monday
Jun202011

Manston calls for 'congestion charge' on bigger airports

Special pleading, spineless bleating

Bosses at Manston are calling on the government to implement a "congestion charge" at London's main airports because of the "devastating impact" of Air Passenger Duty (APD) on smaller airports. The proposal is part of Manston's submission to the government's consultation on APD, which it is estimated could cost the public, visitors and businesses an extra £1bn a year.

Manston is arguing that the tax will severely hit regional economies, and in particular the tourism sector, by hindering the growth of regional airports. As a result Manston is proposing that the most effective way to deliver the government's "Better not Bigger" initiative is to set APD levels at a lower level for uncongested regional airports with significant available capacity to help alleviate congestion and improve the passenger experience at the main London airports.

Click to read more ...

Monday
Mar142011

Manston boss backs campaign for fair air fuel

A Kent airport boss has backed a campaign to stop holidays becoming even more expensive for jet-setting Brits. Charles Buchanan, chief executive of Kent International Airport, wants the government to ground any plans for a further rise in air passenger duty in next month's Budget. British holidaymakers already pay more flight tax than anywhere else in Europe.

According to the travel organisation ABTA, a family of four flying from the UK to Australia pay £340 in flight tax, compared to just £11 for an Irish family. It says the government has increased air passenger duty by 2,600% since 1994.

Click to read more ...