Dominic O'Connell
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British Airways chief executive Willie Walsh has urged the government to “think again” on its plans for a flight tax, saying it will push British passengers to use continental airports for long-haul flights.
The new tax, which will replace air passenger duty, was announced by chancellor Alistair Darling in last year’s pre-Budget report. It is forecast eventually to raise around £3.5 billion a year for the Exchequer.
The new tax will apply per flight, rather than per passenger. This will disadvantage British Airways - its short-haul flights carry fewer passengers than budget airlines like Ryanair and EasyJet, and at present it pays no tax for the one-third of Heathrow passengers that are changing planes. Freight airlines also oppose the plan as the tax will apply to their flights for the first time.
Walsh is understood to have made the company’s opposition plan in recent private meetings with Darling.
Airline industry leaders have made harsh criticisms of the tax, saying it will penalise British aviation, the travelling public, and is not green - the chief reason given for imposing it.
The British Air Transport Association (BATA), the trade body, said the tax rate for a family of four to leave the country would rise from £160 to £250.
Roger Wiltshire, BATA’s secretary general, said the tax would make it cheaper for British holidaymakers taking long-haul flights to travel via a continental hub such as Paris or Frankfurt.
“This is yet another example of the government making controversial decisions on tax policy and failing to think through and appreciate the consequences for the UK public and economy,” he said.
Walsh attacked the tax during a speech last week to the Institute of Directors.
“The proposed duty would give passengers a significant financial incentive to fly long-haul from continental hubs rather than Heathrow. This could only have the effect of weakening Heathrow’s long-haul network, and threatening the frequency of domestic connecting services too,” he said.
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Anyone from overseas who is foolish enough to use Heathrow for a transit airport into Europe needs their heads tested anyway!
I always laugh at the thought of north Americans using Heathrow as a stop-over for flights from the far-east etc. Its one of the busiest airports in the world!!
jeff, reading,
Heathrow? You mean to say people are still actually flying from that dump?
Andrew, Geneva,
I don't often agree with wealthy business men but on this point Willie Walsh is right. I am considering registering my car in France it will be well worth taking a trip there every 6 months, I will fill my car with cheap fuel, wine, cigarettes etc...etc... UK = tax, tax and tax. More tax anyone??
Graham, St. Albans, uk
Get Blair Back ! he caused it all in the first place.
It will not only reduce noise , it will reduce trade to Britain.
But the Goverenment need the extra taxes to pay their more than adequate expenses.
Good Bye Britain.
mike, Cyprus,
It is unfortunate that the Labour government thinks that the way to solve problems is to jack up taxes. To put more of a burden on everybody at Heathrow is really stupid. Maybe we should ask Boris his opinion !!
Frank, Boca Raton, Florida, USA
Co2 Tax?? What will they use it for as scientists are now saying the world is cooling down!! Is there no end to the greedy goverment gravy train???
Dennis, Johannesburg, South Africa.
It will lead to more cancelled or "merged" flights and the consequent massive inconvenience and delays for passengers unless the flights are full.
It is impossible to fill every flight without bumping passengers off the less heavily booked ones. Look forward to your missed cruises etc!
James Dowling, London, UK
Tax Tax Tax, that is all this government can do, get them out now!!!
Nick P., Camberley Surrey, UK
What do you expect with this Government..
They dont think past "the amount of money they will get" when they come up with these new ideas.
Its such a shame we have to wait so long in order to get rid of them.
Either that or get Blair back....(is that possible)
Benjamin, London,
The new tax perfectly aligns the pollution of flying with taxation, it is a really good thing. Who cares if a few people go to all the hassle of changing planes in Paris or Amsterdam instead of Heathrow? It will actually benefit Londoners, in terms of less noise and pollution.
joseph, london, uk
Walsh is right. I shall now not fly into or out of the UK prefering to fly to Paris or Brussels and then take the Eurostar. My decision does not affect UK airlines since I do not fly them because of poor service and lack of passenger appreciation
Patrick, Taipei, Taiwan
I stopped flying via Heathrow a number of years ago to points in Europe due to higher "extra" taxes along with the stupid one small piece of hand luggage policy, which is made a mockery of by the buy all you can duty free mentality after security.
Amsterdam Zurich and even Paris are my first choice
peter andrew, montreal, canada