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| Version 10 | Version 11 |
|---|---|
| Air tax increase comes into force | Air tax increase comes into force |
| (about 2 hours later) | |
| Rules doubling the amount of passenger duty people pay when taking flights from the UK have come into force. | Rules doubling the amount of passenger duty people pay when taking flights from the UK have come into force. |
| 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 Chancellor Gordon Brown last December. He said airlines should pay more for damaging the environment. |
| Hundreds of thousands of people have been asked to pay extra duty, despite buying tickets before the announcement. | Hundreds of thousands of people have been asked to pay extra duty, despite buying tickets before the announcement. |
| While the new tax is only payable on flights from UK airports, passengers face paying twice on internal flights. | While the new tax is only payable on flights from UK airports, passengers face paying twice on internal flights. |
| 'Lawful and proper' | 'Lawful and proper' |
| The government has rejected Conservative accusations that the new tax is not legal because it has been introduced within eight weeks of being announced by the chancellor and has yet to be discussed by MPs. | The government has rejected Conservative accusations that the new tax is not legal because it has been introduced within eight weeks of being announced by the chancellor and has yet to be discussed by MPs. |
| Jack Straw, Leader of the House, told MPs: "The decision to bring the tax into force today was entirely lawful, proper and consistent with previous procedures." | Jack Straw, Leader of the House, told MPs: "The decision to bring the tax into force today was entirely lawful, proper and consistent with previous procedures." |
| "I don't quite know why there are some complaints from the airlines because when they impose a fuel surcharge...they impose a fuel surcharge on passengers who have already booked, who have already paid the previous fare," he added. | "I don't quite know why there are some complaints from the airlines because when they impose a fuel surcharge...they impose a fuel surcharge on passengers who have already booked, who have already paid the previous fare," he added. |
| At Luton airport this morning, Easyjet passengers flying to Faro in Portugal expressed some disgruntlement, but doubted that the higher tax would encourage them to fly less often. | At Luton airport this morning, Easyjet passengers flying to Faro in Portugal expressed some disgruntlement, but doubted that the higher tax would encourage them to fly less often. |
| Those who have not paid so far will have to do so at airports before flying. WHO IS LEVYING THE EXTRA TAX? It applies to all flights from the UK from 1 FebruaryAlmost all airlines are charging customers who bought their tickets before the tax rise was announced last DecemberBA is not charging those customers - at a cost of £11m How the airlines are reacting class="" href="/1/hi/uk/6320197.stm">How passengers are reacting | |
| "On short-haul flights it's not a lot of money but on long-haul flights it's becoming quite expensive," said one passenger. | "On short-haul flights it's not a lot of money but on long-haul flights it's becoming quite expensive," said one passenger. |
| Another said: "I don't believe it's justified - if I thought it was going to help to pay for the environment I would be happy to pay." | Another said: "I don't believe it's justified - if I thought it was going to help to pay for the environment I would be happy to pay." |
| Few problems | Few problems |
| Airlines said they were not expecting major problems in collecting the higher rates of air passenger duty. | Airlines said they were not expecting major problems in collecting the higher rates of air passenger duty. |
| 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. |
| "The vast majority of passengers have now paid," said an Easyjet spokeswoman. | "The vast majority of passengers have now paid," said an Easyjet spokeswoman. |
| The Treasury brought in the rises after accusing the aviation industry of not meeting its environmental costs. | The Treasury brought in the rises after accusing the aviation industry of not meeting its environmental costs. |
| But the move has failed to impress environmental groups, airlines or passengers. | But the move has failed to impress environmental groups, airlines or passengers. |
| 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 Is the new tax affecting you? Q&A: Air tax rises | 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 Is the new tax affecting you? Q&A: Air tax rises |
| Mike Carrivick, chief executive of the airline trade body the Board of Airline Representatives, said the tax was purely a money-grabbing exercise. | Mike Carrivick, chief executive of the airline trade body the Board of Airline Representatives, said the tax was purely a money-grabbing exercise. |
| "At the moment Parliament has not even discussed the issue, but it has been made very clear to us that when it does it (the tax) would be made retrospective," he said. | "At the moment Parliament has not even discussed the issue, but it has been made very clear to us that when it does it (the tax) would be made retrospective," he said. |
| "That places the industry in a very invidious position - it lays us open to a liability of well over £100m." | "That places the industry in a very invidious position - it lays us open to a liability of well over £100m." |
| Friends of the Earth was hoping for a bigger increase, while the British Air Transport Association said the rises would do nothing to tackle emissions. | Friends of the Earth was hoping for a bigger increase, while the British Air Transport Association said the rises would do nothing to tackle emissions. |
| British Airways has absorbed the £11m cost of the increase for those travellers who bought tickets before last December's announcement, for travel from 1 February onwards. | British Airways has absorbed the £11m cost of the increase for those travellers who bought tickets before last December's announcement, for travel from 1 February onwards. |
| But other airlines are passing on the tax to their customers. | But other airlines are passing on the tax to their customers. |
| Collection tactics | Collection tactics |
| All airlines, whether UK-based or not, are obliged to collect the tax for each passenger they fly out of the country. | All airlines, whether UK-based or not, are obliged to collect the tax for each passenger they fly out of the country. |
| The big fear for the airlines was that some customers would turn up completely unaware they had to pay. | The big fear for the airlines was that some customers would turn up completely unaware they had to pay. |
| The ultimate sanction in our terms and conditions is to refuse to carry them BMI spokesman Green taxes 'will fail' | The ultimate sanction in our terms and conditions is to refuse to carry them BMI spokesman Green taxes 'will fail' |
| Many have been sending e-mails to their passengers, or have arranged to collect the fee from customers' credit cards. | Many have been sending e-mails to their passengers, or have arranged to collect the fee from customers' credit cards. |
| But the airlines have also prepared for the possibility of collecting cash directly at the airport. | But the airlines have also prepared for the possibility of collecting cash directly at the airport. |
| BMI said it had a leaflet which explained the situation. | BMI said it had a leaflet which explained the situation. |
| "The ultimate sanction in our terms and conditions is to refuse to carry them," a BMI spokesman said. | "The ultimate sanction in our terms and conditions is to refuse to carry them," a BMI spokesman said. |
| That view - which would effectively mean no payment, no flight - is shared by all the airlines which have decided to pass on the tax. | That view - which would effectively mean no payment, no flight - is shared by all the airlines which have decided to pass on the tax. |