Govt 'should scrap aviation duty plans'

The government should think twice before rolling out a new aviation duty, according to the International Air Transport Association (IATA).

Responding to the Treasury's consultation on whether to introduce the new charge, which would replace air passenger duty (APD), IATA chief executive Giovanni Bisignani said the main downside of the tax is that it would not be environmentally effective.

APD currently brings in about £2 billion of revenue every year. The proposed aviation duty would generate £2.5 billion, rising to £3.5 billion by 2012, and would be in place by November 2009.

"I want to know where the money will go. How many trees will the chancellor be planting with £2.5 billion? Padding the UK budget at the expense of holidaymakers, business travellers or exporters is not sound environmental policy," Mr Bisignani commented.

Environmental issues have been top of the agenda for the aviation sector of late, with a number of major organisations - including British Airways, Airbus and Boeing - signing a declaration to do more to tackle climate change at the Aviation and Environmental Summit in Geneva earlier this week.

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