The Dutch tax, which was introduced in July 2008, added €11.25-€45 to the cost of a ticket.
ABTA head of development, Andy Cooper, said: ‘The UK government must finally see sense and scrap or reduce Air Passenger Duty if we are to avoid significant damage to the UK’s aviation and tourist industries.
‘The Dutch government’s proposal to bin their own aviation tax will greatly benefit their own economy with the added effect of yet more airlines giving up on over-taxed Britain and rerouting to the continent.’
IATA director general and chief executive, Giovanni Bisignani, also welcomed the Dutch government’s decision, which formed part of a package to stimulate the Netherlands’ economy.
‘The tax was a €312m competitive disadvantage for the Dutch economy,’ he said.
But he added: ‘This is just the tip of the iceberg. Airlines saw US$6.9bn in crazy new taxation last year. This is producing all the wrong results - dampening demand and adding costs for businesses.
‘This collective madness must stop. It is time for the Irish government to follow suit and repeal its new Air Travel Tax.
‘And it is time for the UK to realise that its Air Passenger Duty is penalising one of its most powerful economic catalysts at the same time that they are spending billions to bail out other failed industries.’
Finally Flybe urged UK Chancellor, Alistair Darling, not to go ahead with the proposed APD hike planned for November.
Mike Rutter, the airline’s chief commercial officer said: ‘Flybe is not innocent enough to think that the UK government will follow the Dutch lead and abolish APD but we certainly think there is a case for them to put on ice the planned November rise in APD.
‘Such a move would be a tangible stimulus to the British economy and send out a very clear message that the government cares about industries other than just the banking sector.’
From November passengers leaving the UK will be charged under a four-band APD system, depending on how far they are travelling.
Band A will cover flights up to 2,000 miles; band B 2,001-4,000 miles; band C 4,001-6,000 miles; and band D 6,001+ miles.
APD in the lowest class of travel will rise by £1 to £11 in band A and by £5 to £45in band B. Band C will cost £50 and band D £55.
In all other classes of travel the band A rate will be £22; band B £90; band C £100; and band D £110.
Background from e-tid.com:
LCCs welcome Dutch flight tax abolition (26/03/2009)
Dutch passengers ‘ripped off’ by Schiphol (14/08/2008)
Dutch govt to net €350m pa from ‘green’ tax (01/10/2007)
And see also:
Taxes hit UK’s tourism competitiveness (04/03/2009)
Ryanair cuts Shannon services in €10 tax row (05/02/2009)
Big two wade into APD debate (25/11/2008)