UK green aircraft tax misses the mark, says BIFA

THE British International Freight Association (BIFA) expressed support with "informed aviation commentators" who have described a possible "plane tax" as ill-conceived and will damage an industry already on its knees and do nothing to enhance the UK as a major aviation hub.

In fact, the move is likely to have the opposite effect to the intended outcome, said BIFA director general Peter Quantrill.

The "plane tax" proposal is not new - the previous government considered it but realised after consultation with trade, that there were impracticalities to the scheme. "Not least of all those relative to taxing airlines whose aircraft use UK airports as a drop/pick up point for through services enroute from origin to final destination," Mr Qantrill said in a statement.

The new Tory-Liberal Democrat coalition government is considering replacing Air Passenger Duty (APD) with a "per-plane" tax. The rationale is that with APD empty passenger seats raise no revenue for the Exchequer and provide no incentive to the airlines to fill the seats.

"Anyone close to the industry will know that airlines can no longer afford to fly with empty seats and constantly review their schedules to minimise this. In fact the EU Emissions Trading Scheme, being implemented in 2012, will have the increased effect of forcing airlines to operate aircraft at maximum capacity," he added.

Revenues currently derived from APD, and conceivably a replacement plane tax, are not directed towards funding environmental improvements, BIFA added.
 

(Source: www.schednet.com)