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Air tax increase comes into force Air tax increase comes into force
(about 2 hours later)
Laws doubling the amount of passenger duty people pay when taking flights from the UK has come into force. Laws doubling the amount of passenger duty people pay when taking flights from the UK have come into force.
Airlines said they were not expecting major problems in collecting the higher rates of air passenger duty. The increase was announced by Chancellor Gordon Brown last December. He said airlines should pay more for damaging the environment.
The increase was announced by the Chancellor Gordon Brown last December who said airlines should pay more for damaging the environment.
Hundreds of thousands of people have been asked to pay the extra, despite buying tickets before the announcement.Hundreds of thousands of people have been asked to pay the extra, despite buying tickets before the announcement.
Those who have not paid will have to do so at airports before being flying. Airlines said they were not expecting major problems in collecting the higher rates of air passenger duty.
The duty has doubled to: Those who have not paid so far will have to do so at airports before flying.
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  • Economy class flights in Europe, including internal UK flights: £10
  • Business and first class flights in Europe: £20
  • Economy class long-haul flights: £40
  • Business and first class long-haul flights: £80
 Despite some predictions of chaos, most airlines are - at least in public - expressing confidence that there will be few hold-ups.
Despite some predictions of chaos, most airlines are - at least in public - expressing confidence that there will be few hold ups.
We are all geared up with extra credit card terminals Virgin Atlantic spokesman How the airlines are reacting Is the new tax affecting you?
"The vast majority of passengers have now paid," said an Easyjet spokeswoman."The vast majority of passengers have now paid," said an Easyjet spokeswoman.
Tax collecting Laws criticised
Collecting the money has been easier for some airlines than others. The Treasury brought in the rises after accusing the aviation industry of not meeting its environmental costs.
Those who sell most or all of their tickets over the internet have been able to send e-mails to passengers, telling them that they will have to pay the extra tax - and then taking the money from their debit or credit cards. NEW DUTIES Economy class flights in Europe, including internal UK flights: £10Business and first class flights in Europe: £20Economy class long-haul flights: £40Business and first class long-haul flights: £80 class="" href="/1/hi/business/6301757.stm">How the airlines are reacting class="" href="http://newsforums.bbc.co.uk/nol/thread.jspa?threadID=5413&edition=1&ttl=20070131215055">Is the new tax affecting you? class="" href="/1/hi/uk/6258327.stm">Q&A: Air tax rises
However British Airways decided that collecting the extra money from customers who bought before 6 December would be too difficult because many of its passengers book via travel agents and so the airline does not have their payment details. But the move has failed to impress environmental groups, airlines or passengers.
BA decided that it would simply absorb the £11m cost of this extra tax to avoid trying to collect money from long queues of disgruntled customers at airports like Heathrow. Friends of the Earth were hoping for a bigger increase, while the British Air Transport Association said the rises would do nothing to tackle emissions.
Virgin Atlantic has been urging passengers to pay up via its website, with the lure of a discount from future ticket sales, equivalent to the extra tax. The Treasury hoped the airlines would foot the bill for the rise, describing it as a tax on airlines for the number of passengers they carry - not a tax on passengers.
The ultimate sanction in our terms and conditions is to refuse to carry them BMI spokesman British Airways has absorbed the £11m cost of the increase - but most airlines passed on the charges to their customers.
As it too sells many tickets via travel agents, it is expecting some passengers to turn up in the coming weeks and months who owe the tax. Collection tactics
It has plans to collect the cash and extra credit card payments at its check-in desks. All airlines, whether UK-based or not, are obliged to collect the tax for each passenger they fly out of the country.
"We are all geared up with extra credit card terminals," said a spokesman. The big fear for the airlines was that some customers would turn up completely unaware they have to pay.
No payment, no flight The ultimate sanction in our terms and conditions is to refuse to carry them BMI spokesman class="" href="/1/hi/sci/tech/6311603.stm">Green taxes 'will fail'
All airlines, whether UK based or not, are obliged to collect the tax for each passenger they fly out of the country. Many have been sending e-mails to their passengers, or have arranged to collect the fee from customers' credit cards.
Some have left things rather late. But the airlines have also prepared for the possibility of collecting cash directly at the airport.
BMI has only decided in the past few days to collect the money directly, where it can, from customers' debit or credit cards. BMI said it had a leaflet which explained the situation and blamed the chancellor.
If it cannot do this, "we have plans in place to collect at the airports," said a spokesman. A BMI spokesman added: "The ultimate sanction in our terms and conditions is to refuse to carry them."
The big fear for the airlines is that some customers will turn up completely unaware that they have to pay more - and start objecting. That is the view of all the airlines which have decided to pass on the tax - no payment, no flight.
BMI has a leaflet ready to explain the situation and also to blame the Chancellor.
But the spokesman said: "The ultimate sanction in our terms and conditions is to refuse to carry them."
That is the view of all the airlines which have decided to pass on the tax - no payment, no flight - but if you don't like it, blame Gordon Brown.
Some Easyjet staff at Luton and Belfast will be dressing up as tax collectors just to make sure the passengers get that message.