The European Tour Operators Association claims the Caribbean is ‘likely to benefit from a concession, expected to be announced this week, to address an anomaly that APD on Caribbean flights is higher than on flights to the west coast of the US’.
Under new APD charges, which came into effect yesterday, travellers between the UK and the US pay £45 in APD, while travellers to the Caribbean pay £50.
The banding system means that travellers to Los Angeles (11 hours) will pay less duty than those flying to Barbados (eight hours).
Meanwhile, the industry has reacted angrily to news that Chancellor Alistair Darling has admitted the rise in APD is needed to plug the gap in national finances, rather than an environmental levy.
Financial services minister, Lord Myners, made a similar admission, telling the House of Lords: ‘The purpose of the air passenger duty is primarily fiscal.'
See also:
Virgin calls for Tory pledge on APD (30/10/2009)
80% think APD is unfair (28/10/2009)
Olympic warning over APD (16/10/2009)
Industry leaders agree action on APD (07/10/2009)
WTTC calls for abolition of APD (04/08/2009)