APD will be charged per flight, not per passenger
The Government has outlined plans to change the way Air Passenger Duty is charged.
In its pre-Budget report, it says from November 1 2009 it will charge APD per aircraft, instead of per passenger.
Federation of Tour Operators director general Andy Cooper said it was too early to assess the full impact of the move, but said charter airlines and low-cost airlines should benefit.
"Charter airlines tend to have higher load factors than regional and scheduled airlines, so in theory this should be a positive move. But, as always, the devil is in the detail, and we need to sit down and look at this more closely."
In a separate move, the Government has gone some way to resolve an anomoly in APD charges relating to class of travel.
At present, if an airline offers more than one class of travel, only passengers in the lowest class pay a lower rate of APD.
Passengers on airlines with just one class of travel, even on all-business class airlines like Silverjet and Eos, pay the lower rate, while those travelling in Premium Economy on two-cabin charter flights pay the higher rate.
From November 1 2008, the Goverment intends to charge those travelling in all business-class airlines the higher rate, but will still also charge the higher rate to those travelling in Premium Economy on two-class charter flights.
"This is yet another money grabbing measure," added Cooper.
Virgin Atlantic said it was delighted that all-business class airlines have now been included.
But it said it was concerned that there is no indication from the Treasury that the taxation collected will be used for environmental purposes.
A spokesman for Ryanair said: "This is just another tax on ordinary passengers from Government ministers swanning around on private aircraft.
"This Labour Government lied when it proposed to spend the £1bn raised from doubling APD on the environment. Not a penny has been spent on the environment and they are back stealing more from ordinary passengers going on holidays."
EasyJet welcomes APD move
EasyJet has welcomed the Chancellor's decision to charge Air Passenger Duty per aircraft instead of per passenger from 2009.
"This is the right decision and we look forward to working with the government on a new structure that properly reflects the pollution levels of different aircraft types and the distance flown by those aircraft," it said in a statement.
"While it is right that aviation should be taxed more intelligently, easyJet cautions that this must not be used as a Trojan Horse to increase the overall of levels of tax from airline passengers.
"People passing through UK airports already pay £2.4 billion in APD."
The no-frills airline claims that, based on current levels, easyJet already covers its full carbon cost more than four times over.
Andy Harrison, easyJet Chief Executive, said: "We have long argued that the current structure of APD is in need of reform. A tax that penalises families but excludes private jets; and charges passengers travelling to Marrakech the same as those travelling to Melbourne, is just plain wrong.
"A structure that taxes a passenger in the newest, cleanest aircraft the same as someone in an old gas-guzzler cannot be allowed to continue.
"It is right to tax emissions, not passengers. That means reflecting a combination of aircraft type and distance flown. But the reform should not be used as an excuse to further increase the burden of tax on passengers - easyJet, for example, already covers its carbon costs more than four times over.
"We think it is a good step in the right direction that could be up and running before the November 2009 date indicated by the Chancellor today."
First Choice and Thomsonfly say APD plans make more sense
First Choice Airways and Thomsonfly have welcomed the announcement that Air Passenger Duty will be levied on planes and not on passengers.
The two airlines said they are keen to be involved in the forthcoming consultation into the tax and understand how it will be structured.
But, they say the money raised should be used for environmental projects to mitigate the impact of flying, not used simply as a way to generate more money from the aviation industry.
TUI marketing director Tim Williamson explained: "The current APD structure makes absolutely no sense, so we welcome the new consultation, but only if the Treasury is going to take its responsibilities seriously and ensure the money raised from APD will go to projects that have environmental benefits, not just be used to fill government coffers."
With permission from Travelmole