Press Release

Issued by The Air Charter Association.

March 22, 2012

The increase in Air Passenger Duty (APD) tax is bad for the airline industry and bad for the UK economy, says the Baltic Air Charter Association (BACA).

The group, which represents almost 200 companies in the air charter and business aviation industry, has added its voice to the growing condemnation of the increase in the Air Passenger Duty tax due to come into force on 1 April, 2012.

"The UK passenger taxes are the highest in the world," says Chief Executive Markham Jackson. "To increase them even further makes no sense when we all agree that we need to do everything possible to stimulate the economy and drive growth."

APD was introduced in 1994 with a £5 rate for the UK/EU and £10 elsewhere. After numerous increases over the years, the new standard rates, announced in the Autumn Statement and due to come into effect on April 1, will range from £26 to £184, depending on distance traveled.

Mr Jackson says that the air charter industry gives businesspeople and others the flexibility and security they need to travel quickly and conveniently to their destinations. "But if the UK continues to demand taxes at higher levels than other European countries, businesses will no doubt consider relocating to those other countries."

BACA, established in 1949, is the world's largest network for the air charter market and members include air charter brokers, airports, airlines, business aircraft operators, handling agents, aviation lawyers and consultants. It offers training and networking opportunities for members, as well as annual awards, and liaises with aviation and government bodies on matters of concern and interest to its members.