Domestic travellers may face steeper air fares
19 March 2009 08:30
With MPs calling for increased air fares on domestic flights, annual travel insurance reports indicate that holidaymakers taking trips within the UK might be tempted to go without cover.
According to the Telegraph, the Environment Audit Committee is urging the Treasury to introduce a fuel duty and VAT on tickets for all domestic flights, in a bid to encourage passengers to switch to "low carbon rail" transportation.
It warned that most of the funds for green measures in the government's financial stimulus package are being taken from reserves set aside for future environmental projects and called for more new money to be raised.
Committee chairman Tim Yeo said that action needs to be taken to reduce the environmental impact of aviation, adding that higher rates on domestic flights will provide a "better" reflection of actual emissions in ticket prices.
However, evidence suggests that it can be more expensive in the long run for domestic travellers to pass on holiday insurance.
Earlier this month, Direct Travel claimed that the average cost of travel insurance claims made by Brits who stay in the UK is more than £1,000 per person, emphasising the financial risk of loss that still awaits them.