New taxes likely on USA flights

Fed up with high Air Passenger Duty on flights from the UK? Tough – it looks like taxes are likely to get a lot steeper on flights departing from airports in the USA.

In what USA Today are calling a rare show of unity, it looks like politicians from both side of the fence are accepting that increasing taxes on flights is a ‘low hanging fruit’ option which would be easy to implement, and which would just lead to airlines passing on the extra charges to passengers.

Perhaps politicians on the other side of the pond are being more honest in one respect – there is no suggestion of these taxes being an environmental levy, it is a simple means of providing some funds to help plug the multi-billion dollar budget deficit. Where they have an easy sell is in proposals to double the ‘security fee’ from $2.50 to $5 per flight – a move which will affect all UK visitors flying home, aswell as any UK tourists taking internal or connecting flights within the US. The irony, of course, is that this tax is totally disproportionate to the actual costs of providing security, which can also be met through the airport usage fee. In the USA, even now we have passed the 10 year anniversary of the 9/11 horrors, security is an easy sell – whereas in Europe I think we are a bit more sceptical.

There is also a proposal to tax each flight to the tune of $100 per departure – a proposal previously mooted in the UK, but never implemented.

No doubt our fresh-faced new transport secretary will be watching closely!

7 Ways to Beat Air Passenger Duty Rises

    Yesterday, Air Passenger Duty on short haul flights went up by £1, but much larger increases were imposed on long haul and premium service flights. These taxes are set to rise again in November 2010 – and even if a change of government looks likely, there is little to suggest that the Tories will reverse this policy.

    This list was due for a little bit more embellishment, which I’ll try and get round to later in the week, but in the meantime, here are the key suggestions:

    1. Take a Private Jet – you will pay no taxes at all this way.
    2. Let Michael O’Leary pay your taxes – can’t afford a private jet? Look out for Ryanair’s special offers when they pay the taxes for you.
    3. Island hop around Scotland – ‘public service obligation’ flights in the Scottish Highlands & Islands are exempt from duty – and the views are simply stunning.
    4. Take the ferry or Eurostar to Paris or Amsterdam, and fly long haul from there – or even hop over to any European hub on a budget flight, and then continue from there. APD stings you much harder on long haul flights.
    5. Offset the tax by saving on duty free, or not paying other airline hidden charges – ok, so the government sees air passengers as an easy target. Chill out, and enjoy some savings on duty free. The best deals might be at your destination – shop around to see, but even though there aren’t any duty free allowances on short haul flights to EU destinations, these aren’t the ones with the highest taxes. Why not get the best of both worlds and fly via Switzerland or Norway – short haul destinations which also have a duty free allowance. If you don’t have a Visa Electron card by now, then you really can’t whinge about air passenger duty if you are booking flights with a low cost carrier like Easyjet or Ryanair. The taxes aren’t usually avoidable, but the card handling fees always are.
    6. Go all the way by train- this is easier than you might think, and thanks to the new Eurostar links to the continent, you’d be amazed how far you can get in a day from London – and think how much more you see on the way. Don’t fancy a long journey home by train? At least the return flight won’t be taxed so badly, as APD is only levied on the outbound journey – Alistair hasn’t thought out a way of taxing people to come in to the UK yet, but don’t encourage him too much!
    7. Take the ferry to Morocco (from Gibraltar) – ok, so the ferry fare will cost you about as much as the tax you will save, but Gibraltar is a great place to land, and why not add a ferry trip to your African adventure?