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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."
01 December 2016
Pilots at German airline Lufthansa are on strike again after a two-day break in their campaign of walkouts.
02 December 2016
Britons are among the top spenders in Europe when it comes to holidays, new research has found.
30 November 2016
The UK should think about resuming flights to the popular tourism resort of Sharm el-Sheikh, according to a major United Nations agency.
29 November 2016
Plans are in place to develop a new aviation arrangement between the UK and US, to ensure holidaymakers can still fly between the two countries once Britain departs the EU.
26 November 2016
Hundreds of Lufthansa flights have been grounded after pilots working for the airline took part in a strike.
25 November 2016
The US is warning its citizens that Europe is facing a "heightened risk of terror attacks" at Christmas markets and other seasonal holiday events.
24 November 2016
A groundbreaking radiotherapy machine that can track the changing position of tumours in real time will soon be used to treat cancer patients in the UK.
23 November 2016
Top airline bosses are urging the government to scrap air passenger duty ahead of Wednesday's Autumn Statement.
22 November 2016
Winter sun is now the most popular holiday type, according to new research conducted by travel experts.
19 November 2016
A holiday price increase of 10% on trips to Europe could cause tourists to postpone their getaways next year, experts are warning.
18 November 2016
British citizens will no longer be able to travel freely to Europe without paying a "travel tax" or filling in visa forms under plans unveiled by Brussels.
17 November 2016
London mayor Sadiq Khan has signalled his support for a legal challenge to the expansion of Heathrow airport.