Virgin calls for rise in short-haul APD

Virgin Atlantic has released figures today claiming that passengers travelling to long-haul destinations are subsidising short-haul travel to the tune of £222 million.

It has based its figures on the percentage rise in the rate of Air Passenger Duty in the last four years.

In that time, APD rates have risen by 20% on short-haul travel, while rates on long-haul travel have increased by at least 50%.

"Had the tax gone up at the same rate, short-haul flights would collectively be contributing at least £222 million more a year – but instead the difference has been made up by travellers flying further afield," it said in a statement.

The long-haul airline is proposing a new £20 rate of APD for short-haul journeys to redress this disparity and claims the move could bring in nearly £650 million to the Treasury, and allow the Government to reduce rates for holidaymakers and business travellers who are already paying more than their fair share.

Chief commercial officer Julie Southern said: “Air Passenger Duty has rocketed in recent years and with a family of four potentially facing a £260 tax bill to fly to Orlando, steps need to be taken to bring this back under control."

Meanwhile, the airline said its analysis of passenger figures shows that last year over two million passengers flew from London to destinations in Europe which are easily reachable within around two hours on the Eurostar.

Meanwhile, close to three million passengers flew to Amsterdam from London last year – a journey of just 220 miles.

Southern said: “The current short-haul rate is clearly not deterring people from taking flights to places where a quick and easy rail alternative exists. It is clearly not supporting the Government’s environmental objectives.

“If this suffocating tax is going to stay and even be raised higher in the coming years, it must be fairer and drive the right behaviours from business and consumers.”