It seems IAG and British Airways aren’t happy with the state of the planned APD increase at all. To the point where they are now accusing the government of costing new jobs.
According to British Airways:
- The planned 800 people that they were planning to recruit has been knocked down to 400
- The planned re-introduction of a stored 747-400 has been put on hold for the summer timetable,
- Reviewing the use of of another two 747-400’s
They lash out at the government stating:
- There will be more changes to the flying schedule
- Suppliers in Wales, Northern Ireland and England will be hit
- That APD is by far the highest aviation tax in the world.
- That it’s a tax on economic activity – a tax on jobs in airlines, airports, UK tourism and leisure, and many supplier industries.
- And states It is also a tax on doing business with Britain.
Wille Walsh of IAG states:
I believe that this tax is actually doing more harm than good, I believe the impact on the economy is significantly greater than the tax revenue the chancellor is looking at
Iain Duncan Smith, MP Chingford and Woodford Green and Secretary of State for Work and Pensions retorts that airlines do not pay VAT, and need to pay their way in the economic recovery.
The Prime Minister’s offical spokesman said the government was “clearly disappointed” about this, but adds the government raised £2.5bn through APD which was important to dealing with its financial deficit.
Now that’s a lot of tax on flying. I wonder how much is wasted by the government or went into “green programmes” when it was a green tax rather than what it is now – a revenue raising exercise…
With any government’s ability to cook the books – I doubt we’ll ever know.
