Tuesday, 7 June 2011
The chief executive of IATA, Giovanni Bisignani has accused the British Government of being a 'tax bandit' over its collection of £3bn per yearin Air Passenger Duty.
He went on to describe the levies imposed by European governments as a 'wall of shame'. The levies include
the largest aviation tax in the world in APD which rose from 1 November to £11 to £12 per passenger for eceonomy class flights. Further measures include Germany's $1,3bn departure tax, Austria's $119m duty and India's $459m service tax.
Giovanni Bisignani described the airlines profit margins as wafer thin at 0.7% with profits expected to $4bn from expected revenues of $598bn. The profitable results were particularly fragile with 'the efficiency gains of the last decade and the strengthening global economic environment are balancing the high price of fuel. But with a dismal 0.7 per cent margin, there is little buffer left against further shocks."
Oil prices are a further reason for the slim gains with fuel now accounting for 30% of airlines costs compared with 13% in 2001.
Posted by Tom Warsop at 12:47