BA chief hits out as air tax jumps by up to 50%

BRITISH Airways chief executive Willie Walsh has attacked higher rates of Aviation Passenger Duty - or APD - which will increase costs for flyers.

APD rates rise on Monday, with those taking trips to the Caribbean being particularly badly hit. Those flying economy class to the Caribbean from next week will each pay 75 in APD - a 50 per cent hike on the previous rate.

Asked whether the airlines would be prepared to take on the tax burden yesterday, Mr Walsh said: "No. We can't afford to take on the tax burden. We're talking about paying almost 450 million on an annual basis to the Exchequer through this tax. That's 450 million that British Airways does not have. I don't believe easyJet has the money to pay this tax and take it on.

"These are very significant tax burdens that need to be addressed by the government if we are to contribute to the economic recovery that everybody wants to see."

Manny Fontenla-Novoa, chief executive of travel company Thomas Cook Group, said: "We have strenuously voiced, and will continue to do so, our disappointment to the government that it has continued with its plans to increase APD.

"In either in its current form of a per-passenger duty, or the per-aircraft option being discussed by the coalition government, there is no evidence of this tax having any environmental benefit and we will continue to lobby on behalf of our holidaymakers."

Thomas Cook has, for a period, introduced "beat the taxman" deals on long-haul flights.