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Archive for November, 2010

Higher Air Passenger Duty travel costs

Monday, November 1st, 2010

Travellers will feel  more pain now that Air Passenger Duty (APD) has risen yet again. APD falls into four bands, with passengers being charged according to how far they fly. The latest increases hits medium and long-haul travellers hardest. A family of four flying to the Caribbean, South Africa, Kenya or Thailand will pay £300 in APD, while those families planning trips to Singapore, Malaysia, Indonesia or Australasia, pay £340, that’s £85 per passenger, more than double from just two years ago.  What are the new Air Passenger Duty rates?

Band A (0 – 2000 miles from London)

Includes: Europe, Algeria, Greenland, Libya, Morocco, Tunisia

APD: £12 Economy cabins and £24 Premium cabins.

Band B (2001-4000 miles)

Includes: Bermuda, Canada, Egypt, Gambia, Jordan, Oman, Russia (east of Urals), Syria, UAE, USA

APD: £60 Economy cabins and £120 Premium cabins.

Band C (4001-6000 miles)

Includes: Botswana, Brazil, Caribbean, China, India, Japan, Kenya, Maldives, Mauritius, Mexico, Seychelles, South Africa, Sri Lanka, Thailand

APD: £75 Economy cabins and £150 Premium cabins rising to £50 and £100 respectively in November 2009 and to £75 and £150 respectively from November 2010.

Band D (more than 6000 miles)

Includes: Argentina, Australia, Chile, Fiji, Indonesia, Malaysia, Peru, Singapore

APD: £85 Economy cabins and £170 Premium cabins.

APD is a contentious area for many passengers because airlines are reluctant to pay back APD to customers who cancel flights.  By rights, customers should have the APD portion of their flight tickets refunded if they don’t fly but airlines are now charging an ‘administration’ fee for the processing of a refund, In the past, this fee has generally equated to the value of the APD refund so we may see airlines increasing their fees in line.  This makes most customers not bother to pursue a refund which effectively increases the profit margins of airlines, as APD is only paid to the government based on passengers flown.  It really is a ‘no win’ situation for consumers as travel insurance providers generally exclude APD from any cancellation settlement claiming that it is the responsibility of the airline to refund this element of holiday cost.

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