TIACA warns UK government against air policy change

THE International Air Cargo Association (TIACA) has warned that a reported move by the UK government to replace the existing Airline Passenger Duty with a new per-aircraft flight fee would result in higher taxation across the air cargo supply chain, increased costs for manufacturers and consumers and bring no environmental benefit.

TIACA is adding its voice to those of national associations in the UK, stating that such a change is legislation would see all flights assessed, including all-cargo operations.

Daniel Fernandez, secretary general of TIACA, said in a statement: "We understand that governments have a responsibility to protect the environment but if such shift did take place in the UK, the reasons behind it are flawed. It would also set a precedent that other countries may follow and further impede the air cargo industry's ability to meet the needs of global manufacturers and consumers.

"We understand the per-plane fee would ostensibly be imposed for environmental reasons, as a means of addressing aviation emissions of greenhouse gases. While details of the proposed new fee structure are not publicly available, we believe it is unlikely that any of the revenues derived would be directed to environmental betterment and are more likely to go to UK general funds," said Mr Fernandez.

"This would impose a tax on the air cargo sector at a time when it is still reeling from the economic downturn and recent shutdowns of European airspace due to the volcanic eruption in Iceland that negatively affected not only airlines but forwarders, shippers and the many businesses that depend on airfreight to run their operations smoothly. Ultimately, any additional costs will be borne by the consumer through higher prices of goods shipped by air."

TIACA is highlighting its concerns in letters to the UK government's business, transport and the environment ministries. It will also stress that any new tax burden across the air cargo supply chain would impair the aviation industry's ability to continue investing in environmentally-sound new technologies.
(Source:www.schednet.com)