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Flybe says politicians alert to burden of rising aviation taxes on industry Flybe says politicians alert to burden of rising aviation taxes on industry
(3 months later)
Flybe's chief executive, Jim French, claimed the travails of his airline have awoken politicians to the effects of rising aviation taxes, as it plunged further into the red with a loss of more than £40m.Flybe's chief executive, Jim French, claimed the travails of his airline have awoken politicians to the effects of rising aviation taxes, as it plunged further into the red with a loss of more than £40m.
The airline's pre-tax loss widened from £6.2m to £40.7m in the year to 31 March, as the airline undergoes a cost-saving plan that includes slot sales and 500 redundancies. Its UK business continued to decline, recording a 1% fall in passengers to 7.2 million.The airline's pre-tax loss widened from £6.2m to £40.7m in the year to 31 March, as the airline undergoes a cost-saving plan that includes slot sales and 500 redundancies. Its UK business continued to decline, recording a 1% fall in passengers to 7.2 million.
French said air passenger duty (APD) tax had compounded the problems brought by the economic downturn, which was particularly harsh in the regional markets. He said: "We've had to endure the totally unacceptable burden of APD, which is now 18% of our ticket prices. We pay over £70m in APD."French said air passenger duty (APD) tax had compounded the problems brought by the economic downturn, which was particularly harsh in the regional markets. He said: "We've had to endure the totally unacceptable burden of APD, which is now 18% of our ticket prices. We pay over £70m in APD."
The majority of Flybe's passengers take return flights in the UK and therefore pay the £13 charge twice.The majority of Flybe's passengers take return flights in the UK and therefore pay the £13 charge twice.
French added that Flybe's woes had alerted politicians to the impact of APD. He said: "Despite us being at No 10, No 11, telling every bloody minister we could get our hands on – it's only this turnaround, the loss of jobs and the Gatwick sale that has got politicians waking up and realising there's a problem."French added that Flybe's woes had alerted politicians to the impact of APD. He said: "Despite us being at No 10, No 11, telling every bloody minister we could get our hands on – it's only this turnaround, the loss of jobs and the Gatwick sale that has got politicians waking up and realising there's a problem."
The Flybe boss also lambasted Gatwick after the airline sold its slots to easyJet for £20m, ending a source of connecting passengers for Britain's second largest airport. "Gatwick are going to wake up one day and say we want to be a hub – and there's no feed. Amsterdam has got 26 points from the UK. If you'd said 10 years ago we were coming out of Gatwick it would have been catastrophic – but it's no longer the importance it used to be. It was no place for us. They didn't want us."The Flybe boss also lambasted Gatwick after the airline sold its slots to easyJet for £20m, ending a source of connecting passengers for Britain's second largest airport. "Gatwick are going to wake up one day and say we want to be a hub – and there's no feed. Amsterdam has got 26 points from the UK. If you'd said 10 years ago we were coming out of Gatwick it would have been catastrophic – but it's no longer the importance it used to be. It was no place for us. They didn't want us."
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