Air Passenger Duty letter

[ChipnDaleRule]

I have just received this email from Virgin about Air Passenger Duty.


Air Passenger Duty, or APD for short, is the tax you have to pay every time you fly from a UK airport. Introduced in the 1990s, over the last six years APD rates have gone through the roof for long-haul travel. A family of four flying in Economy to the Caribbean in 2006 paid £80 tax. From April this year they have to pay £324, and if they were to travel in Premium Economy or Upper Class they would have to pay £648.

APD has now the dubious distinction of being the highest air passenger tax in the world. I know these rate increases have had a big impact on our customers. In 2006 our passengers paid £55 million to the Treasury. By last year that figure had jumped to almost £200 million!

The Government is facing an enormous economic challenge and we understand the need to reduce the deficit. Tax revenues are inevitably part of that solution but we also need economic growth. Air travel can play a huge part in driving that growth by connecting businesses and bringing in overseas visitors. Our fear is that at the current levels APD is damaging the UK's competitiveness, holding back the economy and doing more damage than the revenue received.

We have taken every opportunity to highlight the cost of high APD to our passengers, our business, and the UK economy as a whole, sadly with limited effect. We refuse to give up, but we need your help.

We are supporting a new Fair Tax on Flying campaign that is encouraging people to email their MP to register their opposition to high flying taxes. If you share our concerns, please take a moment to visit www.afairtaxonflying.org and make your voice heard. I have, and it takes just 15 seconds to do (the text of an email is already written, you just need to enter your postcode and send it).

Thanks for your continued support and we look forward to seeing you onboard soon.

Kind regards,

Steve Ridgway

 

[wayneg]

Just got it myself.
I still think the airlines blame this too much for high prices, ok it doesn't help but its £65pp return to Florida.
Would airlines drop prices if it was removed? Not sure they would.
None of us like tax but the country is in a financial mess, it has to come from somewhere.

 

[WiganTony]

Have to admit having a quiet chuckle to myself when I received the e-mail. On the one hand, VA (and the other airlines) are complaining about APD, yet the majority of them have well and truly jumped on the fuel surcharge money making machine, which I suspect never reduces even when the price of crude oil drops!!!1

 

[chmurf]

the math is simple.
Ask for lower taxes, but maintain current airfaires on some other pretense.

If you read the fine print : they ask the passengers to petition their MP, so that airlines can make more profit on a ticket while the passenger does "all the work" and ends up paying the same amount as before.

well that must only be the pessimist in me, or not

 

[JulieSharp]

I replied back asking if the fares will be reduced if the tax is scrapped. I don't think so!

When they got these more environmentally friendly planes (smaller carbon footprint - less C0) did they reduce the fares - No.

Virgin you are greedy, just like the bankers.

No wonder why people are looking at other cheaper airlines going to Florida. Virgin need more competition to drive down prices. Hopefully, the Dreamliner will do the business next year.

We first flew with Virgin in 1990 and the air hostesses were very glam, but not now, some of them look (how can I put it without offending) chavvy! IMO

Sorry rant over - it's been a long week

 

[wayneg]

Virgin you are greedy, just like the bankers.

Trouble is Julie they don't make a massive profit, last year they did make £18.5million but the year before they lost £132million, it will take them a few years to recover that loss.

 

[Constant]

Aren't the tax and surcharges transparent when you book a flight so you know what is the airline and government costs are?

 

[JulieSharp]

Volcanic Ash, snow on runways and closed airports can't have done them any favours, but the loss hasn't put Virgin off ordering 15 Dreamliners for 2014/15.

On my fly drive invoice for 2 adults and 1 child it just states tax and surcharges £932.00 on top of the price

 

[2Tiggies]

Trouble is Julie they don't make a massive profit, last year they did make £18.5million but the year before they lost £132million, it will take them a few years to recover that loss.

I can see why as well. Okay, this year with BA, but it's all the same for airlines really, I had a look at my detailed fare and taxes breakdown. Per person, rounding to the nearest pound, It cost £302 for taxes. The total ticket all inclusive was £413 per person. So that is £111 per person return (and that includes our domestic connections!) I couldn't get a blooming train from Glasgow to Leicester for that price last month! I think the airlines are getting a bit of a raw deal so while I am as frustrated as the next person about the increasing costs, the taxes are what is killing everyone.