A group that represents UK airlines, which include British Airways, Ryanair and easyJet has requested the UK government to suspend a tax on flights in order to boost demand, which will eventually help the industry to recover from the pandemic. The group said on Monday, that the government should waive Air Passenger Duty for a year, which will save many routes and atleast 8000 jobs in the industry which is already seeing more than 30,000 job cuts.
Although the airlines, ground handling and airports have been benefited from the government employment support schemes and loans. However, there hasn’t been any specific support package for the industry.
On the other hand, France has granted as much as 7 billion euros to Air France in aid, which include state-backed loans, to help the airline survive.
“UK airports are in danger of losing many valuable routes over the coming months unless the government steps in with a support package for our sector – starting with an emergency APD waiver to get us through the winter and into the recovery,” said Airlines U-K CEO Tim Alderslade.
The group thinks, the APD relief would eventually boost passenger demand by around 12 percent over the next 12 months.
APD is a tax on passenger flights from UK airports which adds as much as 13 pounds to an economy ticket for a flight that travels between UK and Europe. However, APD can add more than 170 pounds when it comes to long haul flights.
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