Changes in aviation tax proposed

UK government has introduced plans to change the way Air Passenger Duty (APD) is charged. In its pre-budget report, the Treasury says it will charge aviation tax per aircraft, instead of per passenger. Federation of Tour Operators director general Andy Cooper said it was too early to assess the full impact of the move, but said charter and no-frills airlines should benefit, because they tend to have higher load factors than regional and scheduled airlines.

Treasury spokesman said they will now launch a consultation process with various departments including those at Transport and Business, to see how the new charge could be implemented. Any new system is slated to be introduced by November 2009, with current APD rates frozen for next year.