Opposition to an increase in the U.K. Air Passenger Duty

Commercial aviation helps drive more than 10M American jobs and 5 cents of every dollar of U.S. GDP
Commercial aviation drives more than $1 trillion per year in economic activity
In 2012, U.S. airlines moved more than 48,000 tons of cargo per day
In 2012, the value of a kilogram of U.S. merchandise exported by air averaged 121 times the value exported by sea
For every 100 airline jobs, some 360 are supported outside of the airline industry
Federal taxes constitute $61 – or 20% – of the price of a typical $300 domestic round-trip ticket
In 2011, U.S. airlines carried 16 percent more passengers and cargo using 10 percent less fuel than in 2000
Domestically, airlines drive 5% of economic activity but account for 2% of man-made GHG emissions
From 2000-2011, airlines reduced GHG emissions by 11% while transporting 16% more passengers and cargo
From 1975-2011, U.S. airlines and their partners reduced significant noise exposure by 99%
Commercial air travel is the safest form of intercity transportation in the United States
In the most recent decade, scheduled air service on U.S. airlines was seven times safer than in the 1970s
From 2000-2012, U.S. airlines improved the on-time arrival rate from 72.6% to 81.9%
From 2000-2012, U.S. airlines reduced the flight cancellation rate sharply from 3.30% to 1.29%
Airfares are a bargain: From 2000-2012, U.S. CPI rose 33% while average domestic fare rose just 14%
Adjusted for inflation, the average round-trip domestic airfare fell 15% from 2000
2007 domestic flight delays cost the United States approximately $31 billion
In 2012, the value of U.S. merchandise exported by air reached an all-time high of $427B
In 2012, U.S. exports of air-travel services reached an all-time high of $39.5B, driving a $5.1B trade surplus
In 2012, U.S. passenger and cargo airlines spent more than $50B on fuel, averaging 36% of operating expenses
In 2012, U.S. airlines posted the lowest annual rate of mishandled baggage ever recorded
FAA projects U.S. air travel demand to top 1 billion passengers in 2027
In 2012, US airlines flew 83.4 million passengers in scheduled international service - a record high
In 2012, the total value of merchandise exported from or imported to the United States by air exceeded $927 billion
In 2012, 7.15 teragrams of merchandise was exported from or imported to the United States by air

	Opposition to an increase in the U.K. Air Passenger Duty
	PubZone1 November 7, 2011 The Rt. Hon George Osborne MP Chancellor of the Exchequer HM Treasury 1 Horse Guards Road London SW1A 2HQ Re: Opposition to an increase in the U.K. Air Passenger Duty Dear Chancellor Osborne: We are writing to you to urge the U.K. Government to abandon plans to increase the Air Duty Passenger (APD) tax rate again and instead to begin a progressive reduction of this burdensome tax. In particular, we are concerned that the APD amounts to a tax grab targeting airline passengers for the purpose of deficit reduction. We believe the ADP tax unfairly penalizes airlines and their customers. We would note that similar proposals for an ADP in the Netherlands, Belgium, and Ireland were scrapped altogether after concluding that the harm to jobs and taxable economic activity would exceed ADP-related revenues raised by the tax. It is our hope that the U.K. will follow last year’s decision to not increase the APD rate. The APD tax significantly reduces demand for air transportation today, and any increase will worsen that situation. Demand for air services will inevitably suffer and that will create cascading injurious economic effects, which will undermine the efforts of Her Majesty’s Government to stimulate the economy. Currently, the APD is the largest tax passengers face anywhere in the world. Such a high tax negatively influences travel decisions of those contemplating travel from or to the U.K. We understand the government is considering increasing the existing APD rates by double the inflation rate, or approximately 10 percent. If such an increase occurs, a family of four flying from the U.K. to the United States would be faced with £260 in APD taxes, up from £80 in 2006. A party of four business travelers in premium economy seats traveling to the United States would be faced with £520 in APD taxes, up from £160 in 2006. A 225 percent increase in taxes clearly impacts the propensity of individuals to travel by air, as has been evidenced by the well-documented decrease in traffic from U.K. airports, particularly when compared to other EU airports. Not only do the high APD tax levels affect the travel decisions of U.K. travelers, they also affect the decisions of potential travelers to the U.K. For example, a family of four from Florida considering vacationing in the U.K. would be faced with total APD taxes of about $419 at current exchange rates (up from $129 in 2006). Such a high tax amount clearly makes the U.K. a less desirable destination, ultimately depriving the U.K. economy of the substantial benefits that international visitors provide. The adverse impact of the APD tax harms everyone. It punishes consumers, it harms foreign and U.K. airlines, it causes economic injury to countries and cities that welcome U.K. visitors arriving by air, and it hurts the U.K. hospitality and tourism industry by discouraging air travel to your country. As Prime Minister Cameron said last year, tourism “is fundamental to the rebuilding and rebalancing of our economy. It’s one of the best and fastest ways of generating the jobs that we need so badly in this country.” Air transportation has for decades proven to be an indispensable engine of economic growth. Any increase in the APD tax will act as brake on that growth and should therefore be resisted. We respectfully request that the U.K. freeze the current APD tax rate as a prelude to a phase-out. We believe that there are more economically sound ways to reduce the U.K. budget deficit than strangling tourism and air-service trade between our two countries. Thank you for your consideration of our views on this very important matter. Sincerely, Air Line Pilots Association Air Transport Association American Gaming Association American Hotel and Lodging Association American Society of Travel Agents Association of Corporate Travel Executives Association of Flight Attendants- CWA Business Travel Coalition Charlotte Regional Visitors Authority Choice Hotels International, Inc. CityPass Consumer Travel Alliance Destination Marketing Association International Global Business Travel Association Greater Phoenix Convention & Visitors Bureau International Air Transport Association International Association of Exhibitions & Events Interactive Travel Services Association LA Inc. Maritz Travel Nashville Convention & Visitors Bureau New Orleans Convention & Visitors Bureau NTA (formerly the National Tour Association) Palm Springs Desert Resort Communities CVA San Francisco Travel Society of Independent Show Organizers Texas Travel Industry Association U.S. Chamber of Commerce U.S. Travel Association Visit Orlando PubZone2	A4A advocates measures to support aviation safety, security and well-being.