BA chief condemns flight tax increase

Alistair Darling should cancel planned tax increases of up to 112 per cent on flights from the UK, the chief executive of British Airways said today. Speaking on the eve of the Budget, Willie Walsh condemned the proposals, which could add £280 to the cost of a family holiday to the Caribbean or £360 to Australia.

He said the rises in Air Passenger Duty would penalise working families, harm economic recovery and put the UK at a competitive disadvantage.

"APD was doubled two years ago, making air travel from the UK the most heavily taxed in the world," he told a City of London conference. Now the government seemed "determined to pile yet more misery" on airlines and passengers.

"The government's own figures show that UK airlines already meet their environmental costs, so there can be no 'green' justification for these additional taxes."

Mr Walsh said the Dutch authorities had recently scrapped a new flights tax because of the way it would conflict with wider efforts to stimulate an economic upturn. "I sincerely hope that the Chancellor of the Exchequer takes the same wise step," he added.