Reform of the aviation tax system
The measure
The Government announced that it will explore changes to the aviation tax
system, including switching from a per-passenger to a per-plane duty. It is
hoped that the change could encourage fuller planes.
The Government will consult publicly on major changes.
Who will be affected?
Flight operators from UK airports.
When?
The timing of this review is yet to be announced.
Our view
The Government had previously said that a switch should be made to a per-plane, rather than per-passenger duty. Whilst there is likely to be a positive environmental impact to fuller planes, the switch in the duty may lead to significantly higher fares for air passengers and could lead to reduced competition on routes.
