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Flybe gives cautious welcome to per plane duty tax

30th June 2010 Print

Flybe has given a cautious welcome to the decision in principle to introduce a per plane tax to replace APD.

Jim French Chairman and CEO of Flybe commented:

“Flybe is in favour of a per plane tax providing it is based on the emissions of the actual aircraft type and then is banded by the distance travelled.  It should also reflect allowances for the lower load factors predominant in the areas outside of London and provide lower rates for start up routes.  This would reward those airlines like Flybe who have invested in cleaner modern aircraft technology and incentivise those who have not!”

French went on to say:

“Flybe also supports the inclusion of freight planes, connecting passengers, business jets, private aviation and all commercial aircraft with no minimum size restriction.

“Flybe would however be concerned if a uniform per plane tax was brought in, as this would disproportionately affect the economics of the UK regions.

“A uniform per plane tax would disproportionately impact the UK regions as they represent 44% of passengers but 62% of flights. Dozens of routes relied upon by British businesses and families who don’t live in London are only feasible as a day return by air, but can only be flown economically on the right size aircraft.

“A blanket per plane tax would incentivise the use of large, inefficient, polluting aircraft and artificially stimulate discretionary travel on these aircraft, which use old technology but as a result have a low capital cost and a high environmental impact.

“Flybe believes it is vital that any consultation on PPD must be meaningful and engage with all industry and external stakeholders and we look forward to the process between now and any decision being very clearly laid out.  Flybe stands ready to help the Treasury achieve these policy goals while still powering the regional economics of the UK.”