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From Times Online
October 17, 2006

Fares must rise to curb air travel

By Ginny McGrath

The report suggests that the Government could cut the demand for air travel by raising Air Passenger Duty, a charge of between £5 and £40 per passenger that is currently made by the state and is passed onto consumers as part of the taxes and charges added to air fares.

Another suggestion, which came from a committee of MPs earlier this year is to impose VAT on all international air tickets, raising prices by 17.5 per cent in a bid to cut air travel. The Environmental Audit Committee also suggested an increase in APD, which was frozen in the Budget for the fifth consecutive year.

Co-author of the report, Sally Cairns said: "If the government wants to reduce aviation growth, it has the power to act now. Raising air passenger duty would help to counter reductions in fares, which are estimated to have been responsible for at least 40 per cent of recent aviation growth."
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