AAPA strongly critical of UK aviation policy

Commenting on recent proposals by the UK government to reform APD, Mr. Andrew Herdman, AAPA Director General said, "We have long held the view that the APD is an ill-conceived tax measure, and fundamentally misguided in its approach. Having been subject to repeated revisions, the APD is certainly not simple, nor is it coherent in terms of addressing the government's own stated policy objectives."

Mr. Herdman observed, "The UK Government has performed repeated flip flops, on occasion trying to justify APD, entirely spuriously, as an environmental measure, but later admitting that it was purely a revenue-raising fiscal measure, that extracts GBP2.5 billion (USD4 billion) a year from the travelling public. The APD is entirely ineffective as an environmental measure, to address climate change and reduce emissions, for the simple reason that none of the funds raised are directed towards achieving any environmental benefit."

Mr. Herdman went on to say, "Furthermore, the UK Government appears to be blind to the hidden damage done to the broader economy as a result of the imposition of punitive taxes on aviation, threatening the UK's competitive position as a major business services hub and popular tourist destination, causing growing concern amongst the wider business community."

AAPA submitted a number of comments to the UK Government as part of the latest consultation process on further possible reforms to APD.

AAPA has again strongly criticised the arbitrary use of geographic distance bands, imposing highly discriminatory charges on travellers flying to destinations furthest away from Europe, which has a particularly adverse impact on travel and tourism links between the UK and the Asia Pacific region. Long haul passengers constitute less than a quarter of the total number of passengers, but they contribute two thirds of the total tax revenues raised by APD. Mr Herdman said, "Imagine the uproar if the British Museum, or a London hotel, were to display a price list with radically different prices depending on the nationality or origin of the customer. The UK APD should be repealed in its entirety or, failing which, should at least revert to being charged at a more reasonable flat rate."

Meanwhile, the UK Government's decision to block any further development of much needed additional runway capacity at both London Heathrow and London Gatwick provides yet another example of the dysfunctional nature of UK aviation policy. The resulting congestion imposes additional costs on the travelling public, degrades service levels, is environmentally harmful, and leads to situations where routine bad weather or other disruptions to air traffic flows can lead to the complete collapse of the system for several days or more. As a result, Heathrow is steadily losing share to competing aviation hubs, threatening its long term competitiveness.

Mr. Herdman concluded, "The APD is the world's most expensive and economically damaging aviation tax, imposing discriminatory taxes on both UK citizens and foreign visitors to the UK. Whilst the Government has embarked on a series of consultations regarding the future development of UK aviation, the current policy vacuum is doing untold harm to the UK economy, hampering growth, and undermining the role of aviation in promoting sustainable travel and tourism, as well as a catalyst supporting broader economic and social development."