UK: Airlines unimpressed with air passenger duty tweaks

Britain’s aviation industry on Wednesday criticised changes to a tax on air passengers which will freeze the duty for a majority of customers, saying they did not go far enough to keep Britain competitive as Brexit approaches. British finance minister Philip Hammond said in his annual budget that the 2019-20 level of Air Passenger Duty (APD) would be frozen for short haul and economy passengers, while those flying premium class would pay more. But the industry wants to see the tax cut, and British Airways owner IAG said the plan contradicted Hammond’s pledge for low taxes. “At a time when the country is looking to the government for confidence and encouragement we get a dull and uninspiring budget from a dull and uninspiring Chancellor,” IAG said. “If this tax continues, the UK will struggle to compete on the global stage, post Brexit.” The government said the move “will keep costs down for the vast majority of passengers,” though Britain has high duties compared with other European countries. It has become a particular issue in Northern Ireland, where tourists can cross the border into Ireland to take advantage of cheaper airfares. <br/>