Final plea to ditch air duty rise

money and planes

money and planesIf you're looking to go away on holiday with the kids every pound you save can really add up, which is why the new Air Passenger Duty (ADP) plans could be a significant blow for all of us.

Holidays are expensive - you have to pay for flights, accommodation, travel insurance, new clothes, not to mention everything else when you get there. Entertaining the kids can be expensive too, so a few extra quid in your pocket can be a blessing.

At least travel firms and airlines seem to be on our side - they have made a final appeal to George Osborne to ditch the proposed increase in ADP.

ADP is set to rise by 8% from 1 April, but travel industry workers have been campaigning to scrap the plans before the Chancellor announces his Budget on Wednesday.

About 25 travel bosses have signed a letter which calls for the rise to be stopped "as a prelude to abolition of this tax".

Carriers including Bmi, British Airways, Easyjet, Virgin Atlantic, Ethiad and American Airlines have signed the new letter, which is addressed to Mr Osborne personally.

The Unite and BALPA unions are too campaigning for ADP to be ditched.

The letter reads: "It goes against common sense, economic logic and continues the tax discrimination against air travellers."

In 2011, the Chancellor decided to postpone a proposed inflationary rise in Air Passenger Duty, but this means that in the 2012/13 tax year, there will be a "double inflationary" rise.

For flights in band A - which go to short haul destinations - APD will rise to £13 from £12 for economy, and to £26 from £24 for other classes.

North America and Middle East fights fall into band B, and economy rates will increase to £65 from £60, and other classes will increase by £10 to £130.

Flights to South America, India and China are in band C. Economy rates for this band will increase to £81 from £75, while non-economy will rise to £162 from £150.

Even though these may seem like small increases, the proposed rises would be bad news for families, many of whom are already struggling to get by at the moment.