Aviation taxes could be brought into line with the vehicle tax system under proposals to charge the dirtiest aircraft a higher green levy than their more fuel-efficient counterparts.
The budget airline easyJet yesterday called for air passenger duty to be dropped in favour of a scheme that grades aircraft according to their carbon dioxide emissions and the length of their journey.Under the proposals, a flight from London to Rome on a brand-new aircraft would incur a lower charge than taking the same trip on an older model, regardless of how many passengers are on board. The proposal to tax aircraft rather than passengers would mimic vehicle excise duty.
Andy Harrison, easyJet's chief executive, said: "Air passenger duty has got to be scrapped. If there is going to be an environmental tax it has to be an intelligent one." The easyJet proposal would benefit budget airlines, such as easyJet, ahead of traditional carriers because no-frills operators have the newest aircraft and fly short-haul routes. Virgin Atlantic rejected easyJet's plan yesterday, saying air passenger duty was "the right tax for domestic and short-haul operations" because it encouraged travellers to seek alternative means of travel such as rail.
APD charges passengers £10 for each short-haul flight out of the UK, rising to £40 for an economy-class ticket on long-haul journeys. A Treasury spokesman said inclusion of the airline industry in the EU emissions trading scheme was the best way to tackle aviation's contribution to global warming. "Until this happens, we believe that APD has a role to play in sending signals to air passengers about the environmental consequences of their actions," said the spokesman.
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