TIACA criticizes rumored U.K. per-flight tax

TIACA criticizes rumored U.K. per-flight tax    A rumored move by the U.K. government to replace an airline passenger duty with a new per-aircraft flight fee would result in higher taxation across the air cargo supply chain and increased costs for manufacturers and consumers without increasing environmental benefits, the International Air Cargo Association warned this week.
   'We understand that governments have a responsibility to protect the environment, but if such a shift did take place in the U.K., the reasons behind it are flawed,' said Daniel Fernandez, secretary general of TIACA. 'It would also set a precedent that other countries may follow and further impede the air cargo industry's ability to meet the needs of global manufacturers and consumers. We understand the per-plane fee would ostensibly be imposed for environmental reasons, as a means of addressing aviation emissions of greenhouse gases. While details of the proposed new fee structure are not publicly available, we believe it is unlikely that any of the revenues derived would be directed to environmental betterment and are more likely to go to U.K. general funds.'
   Fernandez said this would 'impose a tax on the air cargo sector at a time when it is still reeling from the economic downturn and recent shutdowns of European airspace due to the volcanic eruption in Iceland and negatively affect not only airlines but forwarders, shippers and the many businesses that depend on air freight to run their operations smoothly.'
   The air cargo industry has recovered to a great extent in 2010, but that recovery has not extended to European carriers, where the International Air Transport Association says losses will still run into the billions of dollars this year, even as airlines in other regions make sizable profits.