“A Tax On Tourism” – Aviation Industry’s Pre-Budget Message to the Chancellor

As a signatory to joint industry letter, published in the Daily Telegraph today (15th March), ahead of the Budget next week, BATA has urged the Chancellor to re-think his plans for a double inflation increase in Air Passenger Duty and to freeze the tax on flying this year.

Letter published in the ‘Daily Telegraph’ on Thursday 15th March 2012

A tax on tourism

SIR – You report (March 12) that Air Passenger Duty (APD) is hitting the travelling public hard here in the UK. The consequences of levying Europe’s highest aviation tax will also be felt by incoming tourists. In the year of the Olympics, when we should be doing everything to encourage tourism, we’re likely to see some potential visitors avoiding the UK altogether.

Furthermore, those who do plan to come are finding ways to avoid paying APD: airport arrivals at European cities with high-speed rail links to London are already registering higher than normal air bookings, suggesting that some tourists plan to circumvent the tax through combined air-rail travel.

On Wednesday, George Osborne, the Chancellor, will present his Budget, at which he plans to increase APD from this April by doubling the rate of inflation. On behalf of the travelling public and the many thousands of businesses that depend on inbound tourism, we urge him to re-think his plans and to freeze APD this year.

John Parkin
Chief Executive, Leeds Bradford Airport

Simon J L Buck
Chief Executive, British Air Transport Association

Mary Rance
Chief Executive, UKInbound

Darren Caplan
Chief Executive, Airport Operators Association

Tracey Poggio
Chairman, Association of National Tourist Offices and Representatives

Mike Carrivick
Chief Executive, Board of Airline Representatives in the UK

Mark Tanzer
Chief Executive, ABTA — The Travel Association

“Aviation is the Economy” – Industry unites and calls on Government to be bold

The three leading trade associations in the aviation sector (BATA, the Airport Operators Association and ADS Group) have come together to call on the Government to be bold, when it launches its consultation on aviation policy next month.

Aviation Industry Unites To Press Government For Bold Policy

The three leading trade associations in the aviation sector have come together to call on the Government to be bold, when it launches its consultation on aviation policy next month.
In a joint statement released today, ADS Group (ADS), the Airport Operators Association (AOA) and the British Air Transport Association (BATA) representing over 2,800 aviation manufacturers, airports and airlines respectively say:

“As the Coalition Government recognises, the UK’s economy needs to compete in both established and emerging markets. This requires excellent aviation connectivity right across the country, ensuring the UK has both vibrant point to point airports and sufficient world class hub capacity. This means prioritising a favourable planning and regulatory regime and developing a bold aviation policy, permitting new airport capacity where required. To ensure there is no further erosion of the UK’s competitive position, the Government must set a clear timetable for these measures to be put in place, as part of a new aviation policy.”

To draw attention to the issue, the trade associations have published the cartoon pictured below.

BATA CEO, Simon Buck, said:
“Aviation is directly responsible for nearly a million jobs*. If one looks at the wider visitor economy as a whole, its direct and indirect impact is 8.2% of GDP, equivalent to £114 bn and 2.6m jobs**.”

ADS Deputy CEO and MD Aerospace, Graham Chisnall, added:
“Britain has the world’s second largest aerospace manufacturing sector. However, this is a globally competitive business so we need policies that nurture the industry and keep its high-tech jobs in the UK.”

AOA Chief Executive, Darren Caplan said:
“Last November, the Treasury recognised the importance aviation plays in connecting the whole of the national economy and in fostering links with existing and emerging overseas economies. Number 10 now needs to support aviation too, and to act fast to ensure we have the aviation network and capacity required for the UK to grow. Delay will simply cost the country jobs, businesses and routes to our international trading partners.”

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* Source: Oxford Economics 2011
** Source: Visit Britain/ Tourism Alliance/ Deloitte 2008
For interviews, high resolution images, and more information please contact:
Paul Baldwin, [email protected], Tel: 0208 288 8928, Mob: 07800 745 129

Notes to Editors
ADS Group
ADS is the premier trade organisation for all companies operating in the UK Aerospace, Defence, Security and Space sectors. Farnborough International Limited (FIL), which runs the Farnborough International Airshow, is a wholly owned subsidiary. ADS also encompasses the British Aviation Group (BAG). For more information see www.adsgroup.org.uk.

AOA
The Airport Operators Association (AOA) is a membership organisation comprising a total of 68 airport companies from across the country. An additional 160 plus companies are Associate Members, representing a broad range of suppliers to the aviation industry. As such, it is the national voice of UK airports. Its vision is of a vibrant airports’ sector which can maintain sustainable growth, sufficient to meet the social and economic needs of the UK.

BATA
BATA is the trade association for UK-registered airlines. Its members cover a wide range of airline services, carry 119 million passengers, 1 million tonnes of cargo and produce 96% of UK airline output.

Between them, BATA members operate to most parts of the world, employing over 71,000 staff and a fleet of more than 770 aircraft.

5 Weeks To Budget – Chancellor Urged to Act on APD

With only five weeks left until the Budget on 21st March, BATA has urged the Chancellor to scrap the planned rises in Air Passenger Duty (APD).

5 Weeks To Go – Chancellor Urged To Act On APD In Budget

With just five weeks to go until Budget Day, Simon Buck, Chief Executive of the British Air Transport Association, said:

“The Government is investing more than £120 million over the next four years to encourage millions more overseas tourists to visit Britain. This is an ambitious but important objective and vital for UK tourism and jobs, given, for example, that France attracts six times as many Chinese tourists compared to the UK.

Due to our geography, most foreign tourists visit the UK by air. But the UK has the highest taxes on flying in the world and George Osborne is planning on further increasing this tax by 8% from 1st April – over twice the rate of inflation.

This will mean UK taxes on flying will be almost ten times as high as the European average. However, several European countries such as Ireland and the Netherlands have drastically reduced or scrapped their taxes on flying because of the damage they do to their tourist industry.

With just five weeks to go before the Budget, the Chancellor needs to ditch the increases he has planned and announce a phase out of the tax if the Government is serious about boosting UK tourism.”

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Notes to Editors
 BATA is the trade body for UK-registered airlines, with members representing all sectors of the industry.
 In 2010, BATA members employed over 71,000 people, operated four-fifths of the UK commercial aircraft fleet and were responsible for some 96% of UK airline output, carrying 119 million passengers and 1 million tonnes of cargo.
 The ten BATA member airlines are: bmi, British Airways, DHL, easyJet, flybe, Jet2.com, Monarch, Thomas Cook, Thomson Airways and Virgin Atlantic.
 The Budget is being held on 21st March.
 Details of the UK‟s „GREAT‟ campaign aimed at increasing the number of tourists visiting the UK can be found at the DCMS website:
http://www.culture.gov.uk/news/media_releases/8753.aspx
and at the Visit Britain website: http://www.visitbritain.org/aboutus/marketing/marketingprogramme/index.aspx

“Clegg’s Speech Misjudges Public Attitude to Aviation Taxes”

Simon Buck, Chief Executive of BATA has commented on the speech given today by the Deputy Prime Minister which was on the subject of tax.

BATA: “Clegg’s Speech Misjudges Public Attitude to Aviation Taxes”

Commenting on the Deputy Prime Minister’s speech to the Resolution Foundation on cutting taxation, Simon Buck, Chief Executive of the British Air Transport Association, said:

“It’s all very well for Nick Clegg to talk about cutting tax for the poor and looking at ways to make the tax system “more green” but his aspirations do not square with the Government’s actions and its own findings on public attitudes. For example, this Government is choosing to make an annual sunshine holiday less affordable for many hard pressed families by imposing the highest taxes on flying in the world and will increase the tax even further from 1st April. Bizarrely, the Deputy PM’s remarks are made on the same day as the Government publishes its own survey, showing that most people are opposed to “push” measures that would affect them financially such as higher taxes aimed at discouraging air travel. If there were annual awards for lacking in joined up thinking, this Government would win hands down.”

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“Consultation on New Airport for London” – BATA Comment

BATA has responded to media reports today (18th January) that the Government is soon to announce a consultation on plans for a new London airport.

“Consultation on New Airport for London” – BATA Comment

Commenting on media reports today that the Government is soon to announce a consultation on plans for a new London airport, Simon Buck, Chief Executive of the British Air Transport Association (BATA) said:

“The Government needs to maintain and build UK connectivity to emerging markets through permitting privately funded additional extra airport capacity where it is most needed and demand is greatest – in the South East of England. Without this, the competiveness of the UK economy will continue to be eroded and jobs will be lost.”

BATA Comment on Government Approval for High Speed 2

BATA’s response to the expected go-ahead from the Government for the High Speed 2 line from London to Birmingham is available here.

BATA Response to High Speed 2 Announcement

Responding to the news that the Government is set to give the go-ahead to the £17 billion HS2 line from London to Birmingham, Simon Buck, Chief Executive of the British Air Transport Association said:

“While this Government appears to recognise the value of investment in public infrastructure to improve domestic transport links, we deplore the absence of any similar commitment to boosting Britain’s links with the rest of the world. The Government appears eager to invest over £30 billion in building new railway lines in grandiose show-case schemes, cutting huge swathes through the English countryside, but at the same time has vetoed airport expansion where it is desperately needed because they say the environmental cost is too high. Despite its cost, HS2 will do nothing to improve the UK’s connectivity with the rest of the world or domestically, with more remote parts of the UK that will never be connected to high speed rail, such as Northern Ireland.

Our major airports are currently losing out on air routes and hence new business and jobs to our international competitors because they do not currently have the runway capacity needed to add in new services. New runway capacity would be privately funded and would not require public money, thus representing far better value for money than a hugely expensive new rail project. If the Government wants to kick start the UK economy, Ministers must break out of their “Little Britain” approach to transport infrastructure provision and recognise that the UK needs to develop its trading links to the growing economies of the world.”

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European Court Ruling on ETS – BATA Response

BATA has responded to the EU Court of Justice ruling today (21st December) on the legality of the EU Emissions Trading Scheme as it applies to aviation.

BATA Response to Court of Justice Ruling on Emissions Trading Scheme

Commenting on the ruling today by the Court of Justice of the EU about the legality of the EU Emissions Trading Scheme (ETS) Simon Buck, Chief of Executive of the British Air Transport Association (BATA) said:

“UK airlines have consistently supported the introduction of EU ETS as the first step in the development of a global emissions trading scheme. However the world’s politicians have failed to agree to such a global system. BATA notes the decision of the Court of Justice but remains concerned at the growing signs that including aviation in the EU ETS could lead to a damaging trade war that is in no one’s interests. We look to the UK Government to ensure that UK airlines are not subject to retaliatory actions from States that are opposed to the inclusion of aviation within the EU ETS.”

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BATA Response to HM Treasury Announcement on Air Passenger Duty

BATA has responded to the Treasury announcement today on Air Passenger Duty (APD) by saying, “the result of the continued imposition of this tax is that Britain will lose tourist revenue from overseas, will lose inward investment from foreign business and lose British jobs.”

BATA Response to HM Treasury APD Announcement

Commenting on the announcements made by HM Treasury today about Air Passenger Duty (APD) Simon Buck, Chief of Executive of the British Air Transport Association said:

“Despite the chorus of voices united against the highest rates of taxation on flying in the world, today’s announcement by the Treasury still leaves Britain’s hard pressed families facing a double inflation increase in the tax from next April.

Rather than carrying out consultations such as this, the Government should have funded an independent study of the effect of Air Passenger Duty on Britain’s tourism industry and on the national and regional economies of the UK. The Government claims to support tourism and inward investment but is in effect damaging both through a bizarre combination of high taxation and bureaucracy.

The result of the continued imposition of this tax is that Britain will lose tourist revenue from overseas, will lose inward investment from foreign business and lose British jobs.”

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“Don’t Like It!” – BATA accuses George Osborne of a “Little Britain” approach to UK infrastructure provision

BATA Chief Executive Simon Buck has commented on the reports that the Chancellor will announce details of a National Infrastructure Plan, involving billions of pounds of investment in transport links, as part of the Autumn Statement tomorrow (29th November).

“Don’t like it!!” – BATA accuses George Osborne of a “Little Britain” approach to UK infrastructure provision

Commenting on the reports that the Chancellor will announce details of a National Infrastructure Plan, involving billions of pounds of investment in transport links, as part of tomorrow’s Autumn Statement, Simon Buck, Chief Executive of the British Air Transport Association said:

“The Chancellor clearly recognises the importance of modern, efficient, national transport infrastructure to facilitate growth and investment in the wider economy but is ignoring a critical area of infrastructure provision so desperately needed if Britain is to maintain its international competitiveness and global trading links.

British business is crying out for the Government to permit airport expansion, especially in the capacity constrained south-east. If Britain is to be able to win new business from the world’s emerging markets then we must be allowed to grow and invest private capital in our airport infrastructure in order that we can offer direct air links where we are losing ground to our Continental competitors.

At a time when the UK is suffering arguably its worse ever economic recession and the highest levels of unemployment in seventeen years, we can ill afford continued indecision from Government on new airport capacity. Airport investment has the added benefit of being private investment for the future of the public good at little or no cost to the taxpayer. But by ruling out the construction of new runways where extra capacity is urgently needed, the Government has put at risk Britain’s ability to win business with new emerging world economies because we do not have the air services with them that we so desperately need.

Approval of privately funded airport expansion would represent excellent value for UK plc especially where approval has already been given by the previous government following a long period of consultation where all the evidence for and against was fully considered. At a time of economic crisis, it is decisions we need, not yet more consultation. Successive UK Governments have been consulting on the future of aviation and new runway capacity for decades. Instead we need a Government able to grasp the nettle and take bold decisions if we are not to damage permanently our economic prospects.

There is an urgent need for the Government to reassess its priorities and we cannot afford to wait another two years before its new aviation policy is unveiled. Otherwise, with competitors such as Germany, which has just added a fourth runway at its main hub airport of Frankfurt, the UK risks losing out in attracting new international investment and business.

Constraining growth at Britain’s airports costs the UK economy over £1 billion per year and puts many thousands of UK jobs at risk. Ministers need to wake-up from their “Little Britain” obsession with planning hugely expensive, publicly funded national railway and road schemes in isolation from our international links and recognise the urgent need to permit privately funded investment at our overcrowded airports in order for the UK to compete for business with the rest of the world.”

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BATA Reaction to speech by Shadow Secretary of State for Transport

Following the speech today by Maria Eagle MP, the Shadow Secretary of State for Transport, to an aviation conference in London, BATA has issued a comment.

BATA Comment on Speech by Shadow Secretary of State for Transport

Commenting on the speech today by Maria Eagle MP, Shadow Secretary of State for Transport, Simon Buck, the Chief Executive of the British Air Transport Association, said:

“We welcome the recognition that the UK needs a long-term aviation policy that can provide both an immediate and longer term solution to the capacity problem in the South East of England.

We also warmly welcome the concept of a cross-party approach as suggested by the Shadow Secretary of State and believe this would help tackle the damaging „stop go‟ aviation policies adopted by successive governments. Agreement is urgently needed on how to tackle the chronic shortage of capacity in the South East of England. Today the Prime Minister is talking about an “all-out mission” to kick start infrastructure projects; new airport capacity is privately funded and would cost the Treasury nothing while yielding huge dividends for UK connectivity, boosting the economy and creating new jobs.”

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