Pilots Blog

Switch from per passenger to per aircraft duty?

The UK Chancellor (Finance Minister) just delivered the first budget of the Coalition Government. There was plenty in there to ponder - a freeze on public sector pay, review of final salary pension schemes, cuts in state benefits, increase in VAT, increase in Capital Gains Tax for higher rate taxpayers and, hidden away in there, a pledge to reform the aviation tax system.

The coalition apparently has a firm commitment to switch from a per passenger to a per aircraft deal to ensure fuller flights. The Prime Minister has already set out his "Green agenda" and, as always, aviation is seen as a soft target. Analysts are saying that the proposal will benefit "Greener aircraft", but the implications for UK based private air charter operators are clear - operational costs are likely to rise and place UK operators at a disadvantage compared to many other European and overseas operators.

Andy Harrison, CEO at EasyJet, however, has welcomed the proposal claiming 4 out of 5 British travellers will be better off under a per aircraft duty and that cargo and private aircraft operators need to pay their fair share. It looks to me like yet another easy win for EasyJet and the scheduled carrier!