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11 April 2011 13:38
Air passengers have been spared increased flight costs with the delay in APD hike
Chancellor George Osborne has put off plans for the inflation-linked increase in Air Passenger Duty (APD) airport departure tax until April 2012, offering much-needed relief to
travel insurance holders.
Holidaymakers have been facing a steady increase in APD since its introduction in 1994. The increase in November last year pushed up the rate for air passengers on the longest flights by up to £170.
However, some business and luxury travellers may be affected as Mr Osborne announced tax would be imposed on private jets.
He said a proposal to replace APD with a per-plane levy is also being deferred as all options currently being considered would violate international law.
A consultation will also be launched on reforming APD to correct existing problems with the system.
Highlighted some of the issues, Mr Osborne told MPs that APD assumed that the Caribbean was further away from the UK than California.
Mike Carrivick, chief executive of the Board of Airline Representatives in the UK, which represents 86 airlines, said: "The Chancellor's decision on APD is a welcome development but does not go far enough.
"The UK travel industry already pays the highest aviation taxes in Europe and the existing APD levels do not take into account the EU Emissions Trading Scheme (EU ETS) which airlines will pay into from January 2012. Other EU countries have reduced or are removing existing taxes prior to the introduction of EU ETS."
21 October 2016
A union is warning of travel chaos over the Christmas period at four major UK airports, unless a baggage carrier transfers staff to other companies.
20 October 2016
Thousands of passengers faced travel chaos yesterday after rail service through the Channel Tunnel was suspended because of a power failure.
19 October 2016
People planning holidays from Gatwick Airport in the run up to Christmas could face travel chaos as unions threaten to strike over a pension dispute.
18 October 2016
Eurostar has said it will cut 12 services from London St Pancras to Paris and Brussels.
15 October 2016
Tourists in Thailand are being advised to "behave respectfully" and wear "sombre" clothing as the country mourns King Bhumibol Adulyadej.
14 October 2016
Holidaymakers are being warned to buy currency in advance as exchange rates being offered are as little as 0.96 euro to the pound at airports.
13 October 2016
Scientists say there is strong evidence air pollution and vitamin D deficiency can cause dementia.
12 October 2016
More people are going on holiday than at any time in the past five years despite terror attacks and the impact of Brexit, according to a study.
11 October 2016
People from across North Carolina had to be rescued from their homes as the downgraded Hurricane Matthew blew out to sea - leaving a trail of destruction in its wake.
04 October 2016
People travelling abroad is on the rise, according to the World Tourism Organisation (UNWTO)
08 October 2016
A hurricane pelting the coast of Florida and described as a 'monster' by a local official has brought chaos to the state, with flights cancelled, homes evacuated and theme parks shut.
07 October 2016
Low-cost airline easyJet says its profits will nosedive as terrorist attacks and air traffic control strikes are taking their toll on the company.