Virgin Atlantic backs Caribbean call for review of UK air tax

02/07/2009 14:53:45

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Virgin Atlantic is giving its support to the Caribbean which is calling for a review of the decision to increase the United Kingdom’s Air Passenger Duty (APD).

LONDON, England, July 2, 2009 – Virgin Atlantic is giving its support to the Caribbean which is calling for a review of the decision to increase the United Kingdom’s Air Passenger Duty (APD).

Chief executive Steve Ridgway says he’s concerned about the level of tax on flights to the Caribbean and believes that if the new rates are implemented as planned in November the region will see a sharp downturn in travellers who are being forced by government to pay much more to leave the UK.

He said the APD will be highly damaging, not only to airlines and those who directly employ thousands of people in the tourism industry, but also to many countries.

“The Caribbean relies on the jet engine to power its economy and higher APD will only weaken its position. The planned APD hikes must be abandoned and the tax scrapped when the European emissions trading scheme comes into force in three years’ time,” Ridgway suggested.

Caribbean governments and tourism officials have been lobbying against the increases that would place long haul destinations like Jamaica and the rest of the Caribbean in one of the highest bands, with economy class passengers facing a tax of £50 (US$82) per ticket as of November 2009, and the amount increasing to £75 ($123) in 2010. The proposed tax for premium economy, business, and first class tickets, will be double that amount.

Ministers and members of the Caribbean Tourism Organisation (CTO) who met with industry partners in London and also lobbied members of the British Parliament for a review of the classification criteria.

Meantime, the British Airline Pilots' Association (BALPA) has also called on the UK government to scrap the planned increases. Their interest, however, is ensuring that UK aviation is able to compete on a level playing field.

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