UK Air Passenger Duty to take a cut…

… but not quite yet.

George Osborn, Chancellor of the Exchequer of the United Kingdom today unveiled his Budget package today. In it was a lovely nugget for those of us who want to go on holiday… or fly for that matter.

The Famous Budget Red Box – Image HM Government – www.gov.uk

One of the things that puts some people off flying out the United Kingdom is pain know as Air Passenger Duty.

Air Passenger Duty is split into four bands, based on the distance from London to a Capital of a Country:

• Band A – up to 2,000 miles from the UK and all European destinations
• Band B – from 2,001 to 4,000 miles, includes North American destinations
• Band C from 4,001 to 6,000 miles, covering South America, China
• Band D over 6000 miles from London, covering Australasia, Malaysia

Currently, Air Passenger duty for is based on 2013 prices, and looks like this:

        Discounted    Full Price
BAND A     £13            £26 
BAND B     £67           £134  
BAND C     £83           £166
BAND D     £94           £188

The Chancellor has announced new rates from 1st April 2015, removing Band C and Band D. Of course, there’s a blip of a rise too. This means flights departing after 1st April 2015 will only have either a short-haul rate or a long haul rate.

However, you will have noticed the one kicker – this is from 2015. This means the 2014 rise goes in – which is still a four band APD product.

So, here’s the full pricing for 2013, 2014 and 2015.

 
              2013                    2014              2015
       Discounted    Full     Discounted  Full     Discounted  Full       
BAND A     £13        £26         £13      £26       £13        £26 
BAND B     £67       £134         £69     £138       £71       £142
BAND C     £83       £166         £85     £170         ABOLISHED
BAND D     £94       £188         £97     £194         ABOLISHED

In simple terms, the discounted APD rate is offered for Economy Class seats, the full APD rate is payable on anything larger. The price rise is based on the UK Retail Price Index.

The full Budget 2014/2015 document is at https://www.gov.uk/government/publications/budget-2014-documents

Air Passenger Duty has been in existence since 1994, starting with a simple £5 or £10 excess, before being split into four bands in 2008, and has been rising ever since.

The simplification and reduction of Air Passenger Duty is a welcome thing in my eyes – although those who fly on premium or redemption tickets will probably disagree when a high chunk of their fare goes to HM Treasury. For those flying long haul distances to the Caribbean (a class C Destination) or Australia (a class D destination), the reduction will be welcome.

For families travelling together this will represent a big saving – again especially on the higher bands/longer distances. Frequent fliers should also notice the difference – again on the long haul legs.

Whilst I cannot imagine APD going away (simply as the UK Government loves the revenue too much), it’s a start – even if the prices are going up…

Of course, those who think these changes are not enough should Tweet @George_Osborn, Her Majesties Treasury, or… you can write to: