AAPA WELCOMES REFORM OF UK AIR PASSENGER DUTY

Kuala Lumpur, Malaysia – The Association of Asia Pacific Airlines (AAPA) welcomed the decision of the UK Government to reform its punitive Air Passenger Duty (APD). 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.”

Mr. Herdman added, “Indeed, in the Chancellor’s own words, this tax ‘hits exports, puts off tourists and creates a great sense of injustice.’ Whilst the reform announced yesterday 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.”