Passenger tax 'ineffective', claims easyJet

07-02-2007

Passenger tax 'ineffective', claims easyJet
Low cost airline easyJet has said that the rise in Air Passenger Duty (APD) is an ineffective environment tax.

Making the statement with its quarterly trading update, the firm criticised Gordon Brown's doubling of APD because it only taxes passengers and not other forms of air travel.

"The increase in APD raises [more than] £1 billion for the chancellor but is an ineffective environmental tax," easyJet said.

"APD does not cover freight journeys by air and it does not differentiate between airlines in recognition of their varying efficiency and environmental credentials."

The airline also reported a near ten per cent rise in passenger numbers during the last three months of 2006. The company says that passenger numbers of 8.1 million, a rise of 7.4 per cent from last year's figure of 7.4 million passengers, were experienced.

The rise in passenger numbers has translated to a 14.9 per cent rise in revenue for easyJet, with the airline reporting revenue of £366.2 million for the quarter.

Passenger numbers were helped with the introduction of new routes, including a three-times daily service between Glasgow and Gatwick airports. The airline had an average of 114 aircraft operating over the period, 13.1 per cent higher than the previous year.


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