V-Flyer

In true Newspaper Headline tradition, the devil is in the detail
Daily Mail article

Quite rightly focussing on child fares is a step in the right direction.

That said if the Scottish Parliament get the ability to raise taxes, then this could put the cat amongst the pigeons Until then AMS it is…...

buns

But will airlines pass the reduction on though??


I don't see any ex-Scotia deals soon though given that Smith says that a Scottish government would have to reimburse Westminster for any loss of income in order to keep the pot balanced,

Tonty

I am inclined to agree. The Times says that APD currently raises more for the Treasury than Inheritance Tax

buns

The question is, perhaps, how the Scottish economy might benefit from abolition of APD through an increase in passenger traffic, and receipt of additional taxation from overnight stays and spending, in and around, Scottish airports.

Only 4 countries in the EU implement APD (Austria, France, Italy and Germany), the UK rate is, by far, the highest, and The Netherlands and Denmark scrapped APD as their governments recognised the economic value of doing so. Note that some countries do charge a 'departure tax'.

The likelihood of Westminster scrapping APD is, effectively, nil; it's a guaranteed earner (£2.9 Bn in 2013/14) and the cost of collection is minimal.

Initially introduced in 1994 it was set at £5.00 for short-haul and £10.00 for long- haul flights; it can now reach as much as £194 (£142 from April 2015) per person in any class other than Y, it's all about the leg room.

The great think is that if you make a round trip in the UK, you get to pay APD on each leg.

It has bugger all to do with environmental emissions reduction, although I think it was sold as a 'green tax' at its inception, as PWC calculated that grounding every single UK flight would reduce global CO2 emissions by 0.1%.

UK domestic and international flights account for approximately 6% of UK CO2 emissions; contrast this with 31% for coal-fired power stations and 22% for road transport.

I wrote to my MP regarding APD; response, nothing.

BBC states (I can't watch him speak live because I'd throw things at the screen) that it will be abolished for those <12 from May next year and <16s the year after.

I bet the airlines are going to love having to calculate the refunds and make changes to their ticketing systems.

Only applies to ECONOMY

tontybear wrote:Only applies to ECONOMY

I watched, his wording was in order to help families who normally fly economy APD will be scrapped for under 12s from 1 May 2015 and under 16s from 2016. Wording didn't entirely convince me it was economy only will need to download and read the entire statement.

see para 2.114

Autumn Statement announces an exemption from
reduced rate APD from 1 May 2015 for children under 12 and from 1 March 2016 for children under 16.

(the reduced rate is the economy rate)


(note large document)

tontybear wrote:see para 2.114

Autumn Statement announces an exemption from
reduced rate APD from 1 May 2015 for children under 12 and from 1 March 2016 for children under 16.

(the reduced rate is the economy rate)


(note large document)

Thank you!

NV43 wrote:The question is, perhaps, how the Scottish economy might benefit from abolition of APD through an increase in passenger traffic, and receipt of additional taxation from overnight stays and spending, in and around, Scottish airports.

The biggest destination from Scottish airports is London, it's not to stimulate airport business although it has the handy side effect of being a vote winner for Scottish families. Being based next to a Scottish airport, if I need to go to Manchester on business I normally go by car or train, Birmingham normally FlyBe sometimes train if I'm unlucky, London is flying only. If you are based in Manchester, Birmingham or London and have to do business in the rest of the UK chances are you'll go by car or train. So this is essentially a tax on Scotland doing business, Scottish business is more reliant on air transport than their equivalents in the rUK and by cutting the tax the Scottish Parliament is trying to improve business conditions to the detriment of the loss in revenue which is probably insignificant in the scheme of things.

That's why it's particularly galling when fog hits London airports because it's usually the domestic flights cancelled in favour of international flights because apparently 6 hours on a train is a reasonable alternative. [/2cents]

VS and EZY have both said that people who have paid APD on flights after 01/05/15 will be refunded.

As stated it's only for Y.

Shame fuel surcharges are still allowed to exist despite the price of fuel being way down.

NV43 wrote:Only 4 countries in the EU implement APD (Austria, France, Italy and Germany), the UK rate is, by far, the highest, and The Netherlands and Denmark scrapped APD as their governments recognised the economic value of doing so. Note that some countries do charge a 'departure tax'.

We did too! In two parts - reduced from €10 to €3 in the first tranche (and they refunded €7 to anybody who had previously booked flights scheduled to depart after that date) and then completely abolished it a couple of years later.

honey lamb

Apologies, for omitting to mention the Republic of Ireland.

NV

NV43 wrote:The question is, perhaps, how the Scottish economy might benefit from abolition of APD through an increase in passenger traffic, and receipt of additional taxation from overnight stays and spending, in and around, Scottish airports.

The biggest destination from Scottish airports is London, it's not to stimulate airport business although it has the handy side effect of being a vote winner for Scottish families. Being based next to a Scottish airport, if I need to go to Manchester on business I normally go by car or train, Birmingham normally FlyBe sometimes train if I'm unlucky, London is flying only. If you are based in Manchester, Birmingham or London and have to do business in the rest of the UK chances are you'll go by car or train. So this is essentially a tax on Scotland doing business, Scottish business is more reliant on air transport than their equivalents in the rUK and by cutting the tax the Scottish Parliament is trying to improve business conditions to the detriment of the loss in revenue which is probably insignificant in the scheme of things.

That's why it's particularly galling when fog hits London airports because it's usually the domestic flights cancelled in favour of international flights because apparently 6 hours on a train is a reasonable alternative. [/2cents][/quote]

Fuzzy

Abolishing APD in Scotland will, I believe, be more than balanced by the revenue generated by an increase in passenger numbers, including business travellers.

I'm in agreement on the relative impracticality of reliance on road and rail to reach other parts of the UK; I've tried, in reverse, and it's exhausting, so EDI and INV have been my regular gateways from BHX, BHD, LHR and SOU.

Travelling the evening before has proven to be much more effective, in terms of work throughput, than attempting to get there, and back, in a single day.

It's also, obviously, benefited local hotels and restaurants and, on one occasion, TESCO as I had neglected to pack cufflinks and ties.

My daughter is 13 next May!!!

Still, I might get a year or two for the under 16 reduction....

NV43 wrote:It's also, obviously, benefited local hotels and restaurants and, on one occasion, TESCO as I had neglected to pack cufflinks and ties.

I think most of my wardrobe consists of items purchased cheaply from Tesco after going away on business and realising I've forgotten something. Shirts, pants, socks, done it all.