AAPA Welcomes Reform of UK Air Passenger Duty

The Association of Asia Pacific Airlines (AAPA) has welcomed the decision of the UK Government to reform its Air Passenger Duty (APD).

Andrew Herdman

With effect from 1 April 2015, the two higher bands of APD for long haul destinations will be abolished, and all long haul flights beyond 2,000 miles will be taxed at the band B rates of £71 ($118) per economy passenger, and double that amount or £142 ($235) for business class passengers.

Responding to the announcement, Mr. Andrew Herdman, AAPA Director General said, "The APD is a regressive tax on aviation that does untold damage to the broader economy, threatening the UK's competitive position as a major business services hub and popular tourist destination."

"Indeed, in the Chancellor's own words, this tax 'hits exports, puts off tourists and creates a great sense of injustice.' Whilst the reform is a positive first step, there is a clear case for completely abolishing this tax. We hope the UK Government will move further in that direction, recognising the positive role played by aviation as a key catalyst of social and economic development," Mr. Herdman added.