The doubling of Air Passenger Duty will be counter-productive and hit the UK's economy.

An analysis by the International Air Transport Association (IATA), of which almost all BAR UK airlines are members, has identified these key points:

• Doubling of APD adds 4.4% to average short-haul economy fare in Europe.
• Doubling of APD adds 3.8% to long-haul economy class journeys (slightly less in Business and First Class).
• 6.1 million fewer passengers will fly as a result
• Airline revenues are reduced by £1.1bn.
• The Treasury gains £1 billion in tax revenues but climate benefits worth only £53 million at most.
• Reduction in long run UK GDP of up to £400 million.

Consequences: The doubling of APD hits the UK economy
The policy fails the cost-benefit test

Commenting on today's announcement, Mike Carrivick, Chief Executive of BAR UK, said:

'It is already widely acknowledged that taxation is a blunt instrument. This analysis by IATA also demonstrates that the consequences of doubling APD are harmful for the UK economy.

'There are few, if any, meaningful environmental gains gained by the increases; those that may exist are heavily outweighed by the loss of business performance for airlines and the UK economy.

'There are various ways in which the aviation industry can offset carbon emissions. However, a blunt taxation regime that offers nothing at all in environmental terms should be a non-runner. The decision to double APD should now be re-visited as soon as possible.'

Attached: IATA Economics Briefing Impact of the Rise in UK Air Passenger Duty

For editors:
BAR UK represents 91 scheduled airlines in the UK in their dealings with Government, Government departments, regulators and airport operators. Full details can be found at www.bar-uk.org.

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