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The Low Carbon Economy Ltd

19 May 2011 10:05:10

easyJet: APD changes will increase CO2 emissions

easyJet: APD changes will increase CO2 emissions
Proposed changes to Air Passenger Duty (APD) could lead to an increase in CO2 emissions, according to an independent study commissioned by easyJet.

Produced by Frontier Economics, the report claims APD will cut the number of trips taken each year by three million, however the number of kilometres flown could increase by 2.5 billion, as the tax favours long-haul flights.

The government's proposals would increase APD from £12 to £16 for flights of up to 2,000 miles, while the number of tax bands for long-haul services would increase.

According to the report, the changes would lead to an increase in CO2 emissions of up to 360,000 tonnes per year.

Carolyn McCall, chief executive officer of easyJet, said the government should reconsider moving to a per plane tax, which she claimed would "encourage the industry to fly more efficiently".

"This independent report shows that the government's proposals on APD would be bad for the environment and the economy," she added.

In its briefing note on APD, the government said it has ruled out a move to a per plane duty, as it would be "contrary to international aviation agreements", although a consultation was launched in the 2011 Budget.  ADNFCR-1235-ID-800549126-ADNFCR

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