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- Posted:Tuesday, September 15, 2009
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Direct travel insurance specialist InsureandGo has stated that 1,005 fewer flights each week are coming in and going out of the UK and, with easyJet recently announcing that the rise in APD is at least in part behind its decision to ground flights in Luton and leave East Midlands Airport altogether, InsureandGo warns travellers to expect similar things to happen in the near future.
Founder of the insurance provider Perry Wilson remarked that the increase in APD - which is set to go up by a maximum of 112 per cent in 2010 - is bound to exacerbate things for the travel sector and the benefits of it are as yet unfathomed.
"This will have a huge impact on the country's travel industry and it will mean millions of fewer trips abroad, resulting in thousands of job losses," he said.
APD - essentially a green tax on planes' carbon emissions - is enforced by the UK government on all flights leaving the country, but little information is provided as to which projects the money generated from this tax is directed towards. Since February 2007, there have been four rates of duty - standard ones include £20 for destinations in Europe and £80 for everywhere else and reduced ones, which are half the standard.