kaitak
Posts: 8933
Joined: Wed Aug 18, 1999 5:49 am

UK About To Tax Aviation - What The Future Holds?

Mon Oct 30, 2006 3:22 am

The British media reports today that HM Government is to look at introducing a tax on aviation, with the express intention of putting an end to cheap flights. I can only imagine that the aviation sector will be planning a rearguard action to address this, but what can it do?

Is this the end of the low cost airline revolution as we know it? And what of the plan to expand airports? Will the plans to add new runways at STN, LHR and others now be scrapped? And what about the need for the aviation industry to invest in new, less environmentally threatening technology, to reduce the effect of CO2 emissions. Is there anything that can actually be done?

The problem is, how exactly do you stop something which you know is posing a significant danger? Where do you draw the line; what actually becomes a cheap flight? One writer to the Independent newspaper (which has been at the forefront of environmental issues) suggested everyone should have a limit of two flights per year (but that's still 120m flights a year). Maybe we should try and distil this issue down to a few key questions:

- In times past, our reaction is likely to have been: how do we obfuscate, obstruct and undermine these proposals in such a way that they become unworkable? Is it feasible - or morally acceptable - to do this now?

- Is it feasible for the aviation sector (in particular engine and airframe manufacturers) to be set certain targets by a specific time, say 2010-2015? After all, the current contribution of aviation is low, but it is expected that this will rise to about 40% (?) by 2050. Surely by then, technology can be developed which will move away from current fuels?

Where do we go from here?
 
vc10
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RE: UK About To Tax Aviation - What The Future Holds?

Mon Oct 30, 2006 3:41 am

I think you will find this is a leaked report, to see what the reaction is of the UK population. This is a common ploy of this government in their on going program of seeing where they can raise taxes without loosing too many votes,
and they love using the excuse that they are doing it only for enviromental reasons.

Anyway they already tax flights with taxes sometimes being as large as the airfare

littlevc10
 
philb
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Joined: Mon May 24, 1999 5:53 am

RE: UK About To Tax Aviation - What The Future Holds?

Mon Oct 30, 2006 4:07 am

I haven't heard anything yet about extra tax on Biz Jet flights. Just taxation for "cheap flights".

It is interesting watching SBS-1 here in Ireland just how much of the transatlantic traffic is composed of these aerial, corporate, limousines.

Today, Sunday, thus far in this corner of S W Ireland I've logged 446 individual aircraft, 21 of which (or 4.7%) are Biz Jets.

On an avaerage working day (Mon - Fri) the figure often reaches between 15 and 20 per cent of a total of around 700 odd aircraft, or roughly between 105 and 140 individual aircraft.

I just trust that those in power will forget the usual bleatings from the corporate lobby and tax the Biz Jet community as much, if not more than the rest of us. God knows they can afford it.
 
BHXFAOTIPYYC
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Joined: Sat Jun 25, 2005 5:47 am

RE: UK About To Tax Aviation - What The Future Holds?

Mon Oct 30, 2006 4:24 am

Quoting Kaitak (Thread starter):
- Is it feasible for the aviation sector (in particular engine and airframe manufacturers) to be set certain targets by a specific time, say 2010-2015? After all, the current contribution of aviation is low, but it is expected that this will rise to about 40% (?) by 2050. Surely by then, technology can be developed which will move away from current fuels?

That to me is the way forward.

Sometimes I wonder why, when we already have Jet2, Monarch, Thomas Cook etc flying from Faro to Manchester why Thomsonfly will start next year, or what earthy use is a Liverpool to Santander flight, or why when Manchester serves the North West of England well, why there is it necessary to have direct flights to Blackpool and Liverpool. The answer is economics. If there is enough money to be made and the demand is there, what right does any government have to curb (through taxation) such flights? Do they propose to put a certain "value" on a flight - in other words a flight from Faro to London return shall cost no less than Eur 300? Would airlines be forced to run a quota system, which would in effect re-regulate an industry that has been deregulated for many years in countries like the UK? I think not.
Breakfast in BHX, lunch in FAO, dinner in TIP, baggage in YYC.
 
Poitin
Posts: 2651
Joined: Wed Jan 25, 2006 6:32 am

RE: UK About To Tax Aviation - What The Future Holds?

Mon Oct 30, 2006 4:35 am

Quoting Kaitak (Thread starter):
The British media reports today that HM Government is to look at introducing a tax on aviation, with the express intention of putting an end to cheap flights. I can only imagine that the aviation sector will be planning a rearguard action to address this, but what can it do?

What? And keep all the British football hooligans at home? NEVER.

Seriously, this is so ludicrous given that we all breathe out more CO2 than the airplanes. Perhaps we should force some of the politicians to stop breathing. That would cut the world CO2 levels faster.
Now so, have ye time fer a pint?
 
supa7E7
Posts: 1360
Joined: Fri Aug 27, 2004 2:05 am

RE: UK About To Tax Aviation - What The Future Holds?

Mon Oct 30, 2006 3:52 pm

Quoting BHXFAOTIPYYC (Reply 3):
If there is enough money to be made and the demand is there, what right does any government have to curb (through taxation) such flights? Do they propose to put a certain "value" on a flight - in other words a flight from Faro to London return shall cost no less than Eur 300? Would airlines be forced to run a quota system, which would in effect re-regulate an industry that has been deregulated for many years in countries like the UK? I think not.

The UK is pointing out that any worldwide carbon limit will need to include aviation. That means a carbon tax on aviation fuel to keep our planet from flooding most costal areas. That was the vague impression I got from this rumor.

No quota system or anything. Today, airlines do not pay for the environmental damage they cause. Possibly that subsidy will be removed in the future, leading to higher prices. It all depends on what people want. Some don't care about coastal flooding, while others enjoy dry land tremendously.
"Who's to say spaceships aren't fine art?" - Phil Lesh

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