Wednesday, December 3, 2014

Air travel becomes cheap for British children due to reduction in Air Passenger Duty


Thanks to Chancellor George Osborne scrapping the controversial air tax for the under-12s from next May, families who would be flying abroad could save up to £71 per child. More good news - from March 2016, all children under the age of 16 traveling in economy will be exempt from the Air Passenger Duty.
Moreover, airlines would have to display on tickets the breakdown of the various elements of the cost so that the passenger knew exactly how much of the fare was spent on fuel surcharges and also know at a glance where their money is going.
This benefit to passengers is due to the fact that in this year’s Budget an announcement has been made on the two highest bands in the four-band system of Air Passenger Duty – this would be scrapped from April 1, 2015.
By virtue of this, with effect from May 1, a family of five flying to Florida could save £213, or £71 for each child under 12. However, those who would fly premium economy, business or first class will not get the benefit. Moreover, it is not clear as to whether those who have already booked flights on or after the May 1 start date will be eligible to get refunds.
It seems EasyJet has already taken the lead and announced that it would refund APD to any customers who had booked tickets for children on or after the May 1 deadline.
Incidentally, the Air Passenger Duty is an airport departure tax, and the charge, which had initially been introduced as an environmental measure has now become a pure measure to increase revenues.
Pressure is also being put on airlines to curb the fuel surcharges that had been imposed on passengers when fuel costs go up – and which take an unusually long time to be removed when the prices fall.

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