Reasons behind the response by members of the British commercial flight sector over the increased departure taxes are a little too obvious to serve anyone's interest
It seems frivolous to be bemoaning new taxes on holidays when the entire aviation industry is reeling from another near-miss after a terrorist bomb plot was uncovered in the UK and Dubai.
But the fragile nature of the aviation industry's profitability means misconceived government levies could inflict a great deal of damage in the long term. That is the fear airline chiefs have over the latest rise in air passenger duty in the UK.
Air passenger duty (APD), a tax levied on all passenger flights from the UK, rose again on the first day of this month for a total increase of 325 per cent in four years.
Short-haul passengers will have their departure tax rise to £12 (Dh71) from £11. Long-haul passengers will pay a 55 per cent increase in duty, to £85 from £55.
A family of four will pay more than £600 in tax on a long-haul trip that starts from Heathrow, while travellers who start their journey in Denmark, Sweden, Norway or the Netherlands will pay nothing.
The UK government collects £1.9 billion a year in APD. That figure is set to double by 2016 to £3.8bn.
Successive governments have tried to claim APD is a green tax that will be used to mitigate emissions from air travel. The truth is, the treasury keeps every penny.
There is not even a promise that APD might be used to fund high-speed rail, the usual coalition answer as to how Britons will get from one end of the island to the other in future.
The tax does not distinguish between empty, old and polluting planes or full, new and more efficient ones. As such, there is no incentive for airlines to replace their oldest aeroplanes or adopt greener technologies.
The owner of Heathrow, the heavily indebted Spanish construction group Ferrovial, is particularly concerned about the impact of a higher APD on their assets.
The tax may prompt more people to travel through Amsterdam where they pay no tax. Not only would this be a loss of valuable shopping revenue to the British Airports Authority (BAA), ultimately it could lead to direct routes disappearing from Heathrow and other British airports.
The increases in duty will also make the UK less attractive as a tourist destination. It now costs a family of four at least £300 more to travel from China to London than from China to Paris or Frankfurt.
There are other anomalies. The tax is banded, meaning a family holiday in the Caribbean costs more than one in the US, even though the Caribbean is considerably closer than the west coast of America.
The airline and airport chiefs are playing the patriotic card in their opposition to this tax by arguing that the latest increase could hit the UK's fragile economic recovery, making it difficult to attract inbound tourists and deterring Britons from flying abroad.
Michael O'Leary, the combative chief executive of Ryanair, was typically scathing of the increase, saying: "It does not make much sense if you are an island on the periphery of Europe to be taxing the only means of getting on and off the island."
But Mr O'Leary would say that, wouldn't he? Ryanair last week threatened to reduce the number of flights from a German airport in protest at that government's new tax on air travel. He is merely trimming his costs to fit market demand.
What if the increase in APD did deter traffic to long-haul destinations? So Britons stay at home and instead spend the money on a leading hotel and spa in the UK, a theatre trip, some new clothes and a few slap-up restaurant meals? Now who would be pumping more money into the British economy?
APD needs to be reformed and the coalition's "per plane" tax proposal is a reasonable place to start.
But the aviation and travel industry risks losing our sympathy in these difficult times when its self-interest is so blatant.
business@thenational.ae
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Nancy 9 (Hassa Beek)
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UPI facts
More than 2.2 million Indian tourists arrived in UAE in 2023
More than 3.5 million Indians reside in UAE
Indian tourists can make purchases in UAE using rupee accounts in India through QR-code-based UPI real-time payment systems
Indian residents in UAE can use their non-resident NRO and NRE accounts held in Indian banks linked to a UAE mobile number for UPI transactions
UAE currency: the story behind the money in your pockets
THE SPECS
Engine: 1.5-litre turbocharged four-cylinder
Transmission: Constant Variable (CVT)
Power: 141bhp
Torque: 250Nm
Price: Dh64,500
On sale: Now
The White Lotus: Season three
Creator: Mike White
Starring: Walton Goggins, Jason Isaacs, Natasha Rothwell
Rating: 4.5/5
2025 Fifa Club World Cup groups
Group A: Palmeiras, Porto, Al Ahly, Inter Miami.
Group B: Paris Saint-Germain, Atletico Madrid, Botafogo, Seattle.
Group C: Bayern Munich, Auckland City, Boca Juniors, Benfica.
Group D: Flamengo, ES Tunis, Chelsea, (Leon banned).
Group E: River Plate, Urawa, Monterrey, Inter Milan.
Group F: Fluminense, Borussia Dortmund, Ulsan, Mamelodi Sundowns.
Group G: Manchester City, Wydad, Al Ain, Juventus.
Group H: Real Madrid, Al Hilal, Pachuca, Salzburg.
Race card:
6.30pm: Maiden; Dh165,000; 2,000m
7.05pm: Handicap; Dh165,000; 2,200m
7.40pm: Conditions; Dh240,000; 1,600m
8.15pm: Handicap; Dh190,000; 2,000m
8.50pm: The Garhoud Sprint Listed; Dh265,000; 1,200m
9.25pm: Handicap; Dh170,000; 1,600m
10pm: Handicap; Dh190,000; 1,400m
UAE currency: the story behind the money in your pockets
Specs
Engine: Duel electric motors
Power: 659hp
Torque: 1075Nm
On sale: Available for pre-order now
Price: On request
European arms
Known EU weapons transfers to Ukraine since the war began: Germany 1,000 anti-tank weapons and 500 Stinger surface-to-air missiles. Luxembourg 100 NLAW anti-tank weapons, jeeps and 15 military tents as well as air transport capacity. Belgium 2,000 machine guns, 3,800 tons of fuel. Netherlands 200 Stinger missiles. Poland 100 mortars, 8 drones, Javelin anti-tank weapons, Grot assault rifles, munitions. Slovakia 12,000 pieces of artillery ammunition, 10 million litres of fuel, 2.4 million litres of aviation fuel and 2 Bozena de-mining systems. Estonia Javelin anti-tank weapons. Latvia Stinger surface to air missiles. Czech Republic machine guns, assault rifles, other light weapons and ammunition worth $8.57 million.
Election pledges on migration
CDU: "Now is the time to control the German borders and enforce strict border rejections"
SPD: "Border closures and blanket rejections at internal borders contradict the spirit of a common area of freedom"
The specs
Engine: 2.0-litre four-cylinder turbo
Power: 178hp at 5,500rpm
Torque: 280Nm at 1,350-4,200rpm
Transmission: seven-speed dual-clutch auto
Price: from Dh209,000
On sale: now
Specs
Engine: Dual-motor all-wheel-drive electric
Range: Up to 610km
Power: 905hp
Torque: 985Nm
Price: From Dh439,000
Available: Now
Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
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- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
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- Disruption Lab and Research Centre for developing entrepreneurial skills
Glossary of a stock market revolution
Reddit
A discussion website
Redditor
The users of Reddit
Robinhood
A smartphone app for buying and selling shares
Short seller
Selling a stock today in the belief its price will fall in the future
Short squeeze
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Naked short
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MATCH INFO
Qalandars 112-4 (10 ovs)
Banton 53 no
Northern Warriors 46 all out (9 ovs)
Kumara 3-10, Garton 3-10, Jordan 2-2, Prasanna 2-7
Qalandars win by six wickets
Test
Director: S Sashikanth
Cast: Nayanthara, Siddharth, Meera Jasmine, R Madhavan
Star rating: 2/5
Honeymoonish
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Profile Periscope Media
Founder: Smeetha Ghosh, one co-founder (anonymous)
Launch year: 2020
Employees: four – plans to add another 10 by July 2021
Financing stage: $250,000 bootstrap funding, approaching VC firms this year
Investors: Co-founders