Anybody excited about the budget news.....

[higgy66]

Lower rate of Air Duty on long haul flights to the US!

Really hope this means we see some cheaper flights next year?

 

[diddldonna]

Didn't see that info so news to me but I am not sure airlines wouldn't put down prices they are out to get what money they can.

 

[higgy66]

You might be right but if I worked in Marketing I'd be making the most of this.

The Airline Duty is set and the airline has to pay so it's simply passed on the client and no profit made on that portion of the flight cost - similar to VAT

If its reduced then I'd be making out the airline was having a fantanstic reduction in prices etc and make a big song and dance about it and hopefully more customers will chose their airline

As the goverment charge less duty - the customer pays less but this does not affect the airlines profit but increases their "goodwill"

OK wishful thinking but if I worked for the airlines I'd be pushing this angle for all us Disboard fans!!

 

[peajay18]

I thought the duty to the US was remaining the same, but other long haul flights were being bought in line with it?

http://www.bbc.co.uk/news/business-26647046

 

[Elise79]

Actually, they are not reducing the APD on flights to the US

What they are doing is reducing APD to two bands removing the most expensive 2. You will have a short haul rate and a long haul rate. The long haul rate is the same as the current rate to the US.

 

[higgy66]

OK Plan B - how about we start a petition to vote for Miami being the capital of the UK? That should reduce the Duty??

 

[DLPDreams]

Even if this had been the case - clearly it is not. Honestly, I can't see that it would have made any difference to prices - airlines would have just increased their profit margins, rather than pass the saving to the customer.

Remember the energy companies and how they were racing to give customers refunds when fuel tax was reduced..... thought not .

 

[WiganTony]

TBH, even the abolition of APD would make little difference to the price of flights. If you take a typical price breakdown (VA LGW-MCO, out 17/08/14, return 31/08/14) at £1,436.97:

Fare 1: Carrier VS RTWGB LON to ORL (rules)
Passenger type ADT, round trip fare, booking code R
Covers LGW-MCO (Economy) £414.50
Fare 2: Carrier VS Y2UK ORL to LON (rules)
Passenger type ADT, round trip fare, booking code Y
Covers MCO-LGW (Economy) £692.50
VS YQ surcharge (YQ) £208.00
VS YQ surcharge (YQ) £5.00
USDA APHIS Fee (XA) £3.00
US Immigration Fee (XY) £4.20
US Customs Fee (YC) £3.30
United Kingdom Air Passengers Duty (GB) £69.00
United Kingdom Passenger Service Charge (UB) £12.27
US International Arrival Tax (US) £10.50
US International Departure Tax (US) £10.50
US September 11th Security Fee (AY) £1.50
US Passenger Facility Charge (XF) £2.70

Subtotal per passenger £1,436.97

It's only £69 out of the total price, so any reduction wouldn't really make much difference whether the fare was £1,100 (as here) or £500.

 

[Kath2003]

Even if it were reduced, airlines know that people will pay the prices they currently charge - so they'd keep prices the same and pocket the extra. The only way to avoid price hikes through ADP is to keep them low to begin with - not reduce them.

 

[dbriggsq]

I was quite excited about this until I saw the detail. When you look at the breakdown price of flights you can see how much is tax and duty. I've just looked at the prices for our dates in may on sky scanner and to fly virgin from Dublin via Manchester is 407 whereas to book direct from Manchester is 642. Madness!

 

[gavvy]

Airlines love to tell you APD is what keeps flights high... VS and BA forget to tell you however that the largest surcharge is by them for the so called Fuel- this adds hundreds to a ticket.

Fuel surcharge really is the biggest con going APD is nothing in comparison.