Report: Heathrow APD increase would ‘divert passengers'
Tax increases on Heathrow and Gatwick passengers will force many to opt for provincial airports, a new report has said.
Airport news for Heathrow,Gatwick on 03/01/2013.
Tax increases on Heathrow and Gatwick passengers will force many to opt for provincial airports, a new report has claimed.
The news comes via a new analysis from the Department for Transport, which revealed that a 50 per cent rise on the APD levy would is large enough increase to persuade most passengers to head for secondary gateways such as Stansted and Southend airports.
Commissioned by Her Majesty's Revenue & Customs, the Modelling the Effects of Price Differentials at UK Airports report has been presented to lawmakers to be presented as essential evidence in the Sir Howard Davies-led government consultation on airport capacity in the South East.
The news comes as the Air Passenger Duty tax continues to undergo heavy scrutiny, as aviation and business leaders claim the fee – which is the highest in the world – has a substantial effect on passenger figures.
APD rates have risen significantly in recent years and can add as much as £92 to the price of flying from the UK.
Campaign group A Fair Tax on Flying said in a recent report that a family of four flying from the UK to the United States in economy seating pays around £260 in departure taxes, whilst those flying to the US from French airports only pay £38.