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UK Behind Only Chad in Airline Taxes

Source: Bloomberg - Sat 9th Mar 2013
 UK Behind  Only Chad in Airline Taxes

Britain has the 2nd-highest airline access costs among 140 countries worldwide, according to research published today in a World Economic Reform report into competitiveness in the travel and tourism industries.

The U.K. ranks behind only Chad in terms of ticket taxes and airport fees, with a rating of 24.5 out of 100, where 0 represents the highest expense, according to the study. The U.S. is rated 14th most costly, with Japan, Germany and France also figuring among the bottom 1/3rd of countries.

Airlines operating in the U.K. pay a tax known as air passenger duty on a per-passenger basis, with the tariff rising in 4 bands to as high as £184 a trip for long- haul, premium seats.

The 4 biggest carriers serving the country said Chancellor of the Exchequer George Osborne should do away with the levy in his next budget to be delivered on March 20.

"We call upon the Chancellor to use the forthcoming budget to remove APD to stimulate economic growth," Ryanair, EasyJet, Virgin Atlantic and BA, said in a joint statement. "It's hard to find another comparable table on a key measure of international competitiveness which shows the U.K. to be trailing the rest of the world."

Swaziland, Iran and Luxembourg score highest in the WEF, with ratings above 97.

Britain fares better in the overall ranking of competitiveness, placing 5th in the world - 2 places higher than in the 2011 study - behind only Switzerland, Germany, Austria and Spain.

Odd, that barely 2 weeks ago Ryanair announced that they were cutting a number of routes to Spain in protest over unreasonable Spanish airport taxes , but have yet to cut UK routes to make a similar protest against the UK.

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