bmi now say on their website that they will be collecting the additional APD. I haven't heard anything yet, but I don't fly until the end of April.

luci

APD loophole exposed by bmi

Bmi regional has exposed a loophole in the new rules over Air Passenger Duty so that all of its passengers - business and economy - will pay the lower rate.

According to a notice issued by the airline's GSA in Australia, the airline has removed the cabin dividers between business and economy class to create just one cabin.

Although business passengers still benefit from seating at the front, better catering and lounge access, they will now pay the same duty as economy passengers.

The bmi regional notice said: "The CRSs have been informed about this change, and it will change in the system asap."

Under the APD rules, passengers travelling with airlines which have only one class of travel - even airlines like Silverjet, Eos and MAXjet which are all-business class - pay the lower rate of APD.

However, passengers flying in premium economy cabins on two or three-class airlines are liable for the higher rate.

British Airways said it currently has no plans to do the same. "It will be interesting to see what happens," said a spokesman

With permission from Travelmole

What a ridiculous ruling - so by removing a curtain there suddenly is no difference between Business and Normal class?

Wonder what would happen if I as an economy passenger would walk the length of the plane into the first class section and use "their" toilets - don't think so somehow.

Mark

luddendenturk

yes as someone has already mentioned it applies to e ticket flights. we booked our flight only back in sept and got an exceptional price for the ticketless flights, im assuming if you got it cheap that yours is also ticketless flight, i have today rang them and paid over the phone as my cc had changed in jan and therefore agreeing for them to use my original cc via the link they sent wouldnt have worked.

Hi Ellie_meg and Robbo11

Thanks very much for the info re First Choice and additional APD.

We will just sit tight and await their e-mail.

More airlines could follow bmi regional's lead over APD anomoly

More airlines say they are considering following bmi regional's lead over the 'class anomaly' of Air Passenger Duty.

The Aberdeen-based airline has removed the curtain between its economy and business class cabins on its Embraer aircraft so that all of its passengers pay the lower rate of APD (see earlier story).

Under APD rules, airlines which operate more than one class - whether it's economy and business or economy and premium economy - have to charge double the APD to passengers in the higher class.

However, passengers on airlines operating with a single class - even the likes of business-class airlines Silverjet, Eos and MAXjet - only have to pay the lower rate.

First Choice and Thomas Cook both confirmed that they were now considering ways to lower the APD charge for passengers who have upgraded to their 'premium' economy classes.

"We haven't got any immediate plans to remove the curtains but it's all so new and we're really interested to see what happens," said a spokeswoman for First Choice.

A Thomas Cook spokeswoman said: "Thomas Cook is committed to ensuring that its customers get the best possible deal. The company is currently examining ways to minimise the impact of APD on customers, including on its aircraft."

Roger Wiltshire, secretary general of the British Air Transport Association, said since APD was introduced 10 years ago the face of the airline industry has changed.

"Commercial initiatives in the marketplace means that an extra class of travel has been introduced by many airlines. Now that APD has doubled, an �80 charge for a long-haul flight is not really appropriate for these 'premium economy' products.

"We think the banding of it is now out of date and we are very keen to see that rationalised."

He said this anomaly was part of the discussions currently taking place with the Treasury.

A spokesman for the Treasury said airlines who simply removed their curtain dividers risked investigation by Revenues and Customs which oversees the collection of APD.

"If the aircraft is separated into different areas and has different seats, in a different configuration, and are marketed differently, this counts as a different class."

He said APD was charged at two different rates because "that made it easiest to work with airlines' existing systems".

"It's also for two reason," he said. "Firstly because the seats are more expensive and someone paying �5 on a �3000 seat is an insubstantial amount of money, so they need to pay a higher level.

"Secondly, there should be a higher price for business travel to give a greater environmental signal."

But when reminded of the fact that business passengers on all-business class airlines pay the lower rate, while holiday makers on charter airlines who pay slightly more for more leg room pay the higher rate, he said: "We're aware of the concern about this anomaly and discussions are taking place with the industry. All I can say is that we keep all taxes under review."

With permission from Travelmole

You would have thought that the level of tax would be calculated on the fare class purchased. Must be easier than determining whether an aircraft has a curtain or not?

Mark

i am confused,i have two holidays booked-one with airtours which in the holiday price breakdown includes APD at £10 each,so does this mean ive paid it already and wont have a further charge??.And one with thomas cook which my friend booked as she works for cumbria group travel,i asked her if we had to pay APD and she rang i presume Thomas Cook and they said we may have to pay £40 per person at airport,is this right???I am going to ring both companys tomorrow but any advice please

The Air Tours holiday looks as though you have already paid the full amount asuming the flight is within Europe and in economy. On the Thomas Cook holiday , the only way you would have to pay an extra £40 per person is if you are flying long haul in Business or First Class.

Thanks for you reply,the airtours holiday is to cyprus and the thomas cook holiday is to benidorm so im assuming we will get charged £10 each at airport with TC holiday??thanks again

Re the 2% of the holiday cost having to be absorbed by the holiday companies. This is TRUE. I have just heard a representative from the travel industry on the radio saying that for package tours the companies must absorb this tax if is doesn't exceed 2% of the total cost of the holiday. This is the law.

More information can be seen here in "what about package holidays?"

http://news.bbc.co.uk/1/hi/uk/6258327.stm

http://news.bbc.co.uk/1/hi/business/6397067.stm
- just read this on the BBC, could be interesting...

Just to clear up some confusion on the 2% absortption fee for package holidays:

Does this is also apply to new bookings or only bookings made prior to the tax increase?

Mark

I think that 2% absorption will only apply if the quoted price when booking the holiday did not take into account the extra duty. I would imagine that the travel companies will have now factored in the increase in all their current prices.

That would confirm what I thought.

Mark

FTO mounts legal challenge to APD

The Federation of Tour Operators has launched a legal challenge against the Government over Air Passenger Duty (APD).

If successful, the judicial review will mean the complete withdrawal of the tax and leave the Government open to claims by airlines, and their customers, for the repayment of over £2 billion that has been collected since 2004.

The FTO claims there are two principal challenges to the legality of APD.

Firstly, APD is in contravention of Article 15 of the Chicago Convention on International Civil Aviation, which says the UK Government cannot impose charges on aircraft solely for the right of transit over, or exit/entry from or into the UK from a fellow state.

"Charges are only permitted if they are cost-based in relation to the provision of a service, such as use of airports services. APD is not levied for any such service and is simply a tax to raise revenue for general government spending," said the FTO.

It said the article, which was incorporated into EC law in 2004, is illegal and should be withdrawn with immediate effect.

Secondly, the FTO argues that there has been a breach of the Human Rights Act, particularly Article 1 of the first protocol of the European Convention on Human Rights

"The unsatisfactory manner in which APD has been introduced interferes with the legitimate property rights of tour operators, depriving them of income to which they are legitimately entitled," it said.

"When the tax was first introduced in November 1994, and for all subsequent increases, the industry was given 11-12 months in which to inform customers and to include it in brochures.

"On this occasion the Government chose not to do this, allowing instead just seven weeks lead-in time before its introduction on February 1. As a result, this retrospective tax on the flights of the four million customers who had already booked their holidays will have to be borne by tour operators at a cost of some £50 million.

FTO director general Andrew Cooper said: "This substantial legal action has been launched with great reluctance. APD - which since its introduction has raised some £12 billion - is a general tax, and not one which is used to support transport or environmental initiatives.

"It emphatically is not an effective environmental measure. Indeed as a tax levied on passenger numbers not aircraft, its effects are perverse in that it penalises environmentally friendly airlines with high load factors, and rewards those with half empty flights.

"In terms of climate change, our legal action on APD should not be misunderstood. We are acutely aware of the importance of aviation meeting its environmental responsibilities. This is not best achieved through passenger levies or new fuel taxes but, in place of these, through aviation joining the EU emissions trading scheme at the earliest opportunity and at the appropriate levels.

"We will not allow any post-rationalised 'greenwashed' claims for APD to muddy the issue. Our legal action is being generated simply by the way in which the Government chose to introduce the new APD rates. It was unfair on tour operators and we will use all means to defend the sector from the entirely avoidable consequences."

From February 2, APD was doubled so that passengers now pay £10 for economy class fights to Europe, £20 for business and first-class flights to Europe and £40 for economy and £80 for premium economy, business and first-class long-haul flights.

With permission from Travelmole

Industry hits back at Tory plans for 'green' air tax

The travel industry has come out in force against new environmental taxes being proposed by the Conservative party.

Unveiling the proposals, shadow chancellor George Osborne said they were designed to target frequent travellers but not families taking one package holiday a year.

The plans include a 'Green Air Miles Allowance', where everyone would be able to take one short-haul flight at the standard rate of aviation tax, but frequent flyers would pay a higher rate.

Other proposals being put forward are a fuel duty or VAT on domestic flights, or replacing Air Passenger Duty with a per-flight tax linked to carbon emissions.

But travel industry bodies say the taxes would damage the UK economy and wrongly penalise the aviation sector.

Federation of Tour Operators director general Andy Cooper said aviation was only responsible for 6% of carbon emissions in the UK and 1.5% worldwide.

"It's just completely over the top and unnecessary," he said. "If these proposals were directed at the cost of electricity, gas and motors, I would have more sympathy.

"To say that families won't be affected is fine in theory, but the industry has moved on so much that people don't just take one package holiday a year."

A spokeswoman for ABTA said: "There seems to be a lot of headline grabbing going on here. VAT on domestic fuel for flights is just not workable. We don't want to see a decrease in passenger numbers overseas. We might want to slow down the rate of growth, but none of these proposals will do that. We need to be consulted very thoroughly on this."

Tom Jenkins, executive director of the European Tour Operators Association said: "The problem with so much of the environmental campaign is that the only solution it sees to dealing with climate change is to stop people from travelling and from undertaking all kinds of commerce that make the world go round. It's like advocating amputation as the cure to a septic finger.

"What we need is much more enlightened thinking that simultaneously stimulates reduction in CO2 emissions and productive innovation. The focus should be on technological advancement and alternative sources of fuel rather than punitive taxation that will destroy the economy."

Airlines, including British Airways, Virgin Atlantic and Easjyet, also voiced their opposition to the proposals, which are now up for consultation.

With permission from Travelmole

we booked our flights with virgin in October and have had to pay further £80 for 4 of us because of apd!!

We fly to Las Vegas in 2 weeks with bmi on a flight that was booked on 1 December. Today I have received an email from bmi to say that they will be taking the additional APD from the card that we originally booked with.

luci