Air Passenger Duty – Continuing Controversy

On 6 December 2011 the UK Government confirmed that Air Passenger Duty (APD) rates will increase by some 8% from April 2012 and that the scope of the APD regime will be extended to include the bulk of business aviation from April 2013 onwards. Northern Ireland has also been singled out for reduced APD rates, principally on the basis of the economic impact that a continued loss of passengers to Dublin Airport could have on Northern Ireland's economy and more specifically US investment.

The travel industry's reaction to the Government's recent announcements has been scathing, not least because, following an extensive period of Government consultation, no changes have been made to the way in which APD is levied on commercial flights, with the problematic distance banding and the arguably disproportionate application of 'standard' (i.e. business/first class) APD rates to those travelling in premium economy being retained.