The Chancellor's decision to abandon plans to introduce Aviation Duty and retain the principle of the existing Air Passenger Duty (APD), is a victory for common sense, says the Board of Airline Representatives in the UK (BAR UK).

However, the decision to completely revise APD, with a structure of four distance related pricing bands, will see large-scale increases for all passengers flying 2000 miles or more.

Passengers flying in Economy class beyond the EEA countries will see APD rise from the current £40 to a maximum of £85 by 2010/11, and those flying in all other cabin classes will see an increase from £80 to a maximum of £170 over the corresponding period.

Mike Carrivick, BAR UK Chief Executive, said:

'Dropping the proposed Aviation Duty was definitely the right thing to do and the Treasury should be complimented on withdrawing its proposal.

'We welcome the decision to retain APD, but note the revised distance bands will cause anxieties to many airlines and also create some market distortions.

Now is not the time to impose additional financial burden on the airline industry and the travelling public.''

For editors:
The Board of Airline Representatives in the UK (BAR UK) Ltd represents 90+ scheduled airlines in this country in their dealings with Government, government departments, regulators and airport operators. Full details of its work, and the Board, can be found on www.bar-uk.org.

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For further information contact:

Mike Carrivick, FRAeS
Chief Executive BAR UK
Tel: 020 7393 1261
Fax: 020 7393 1206
Mobile: 07747 612840