ATA Urges Climate Tax Proposals Elimintaed
The Air Transport Association of America (ATA) yesterday urged climate negotiators to oppose an exorbitant new climate change tax to be imposed on the airlines and their passengers. The so-called "International Air Passenger Adaption Levy," would single out aviation to raise $10 billion per year for climate-change projects to be built in developing countries.

"The proposed tax would unfairly and unreasonably target one industrial sector, a sector that has a tremendous fuel and greenhouse gas efficiency record, to the detriment of the economy," said ATA President and CEO James C. May in a letter to the U.S. Special Envoy for Climate Change, Todd Stern, urging the United States to strongly oppose this steep tax on international air travel.

"Even though the U.S. airlines account for less than 2% of the U.S. greenhouse gas inventory, we are committed to doing more,” said ATA. “However, this hefty new tax would be counterproductive, siphoning away to the developing countries the very funds that the U.S. airlines need to continue to invest in new aircraft, retrofits, alternative fuel and other upgrades critical to the airlines' environmental performance and the U.S. economy. We should not be considered a piggy bank for developing countries."

In its letter, ATA urged the United States to oppose the tax, and instead to support the industry's proactive proposal for a global, sectoral approach to aviation and climate change.

U.S. airlines improved their fuel efficiency by approximately 110 percent between 1978 and 2008, saving 2.7 million metric tons of CO2 - roughly equivalent to taking 19.5 million cars off the road each of those years.

The move follows similar action by the UK’s Daily Telegraph to get passengers to sign a petition against two new passenger duties that took effect yesterday. The tax is a four-tiered program based on distance between London and the destination’s capital city and ranges from economy class will rise from £10 to £11 in economy for short-haul flights to between 40 to £45 or £50 on medium-haul flights, and from £40 to £55 on long-haul flights. Prices for passengers in premium-economy cabins will rise by up to £30. The taxes are expected to rise again next November. One of the chief reasons the newspaper opposes the new tax is the fact that passengers aboard business jets are exempt.

The Telegraph:
Ten reasons why APD must be abolished:
1 Disproportionate increase
In 2004 the Government imposed APD at £5 for short-haul flights and £20 for long-haul flights. In that time, airlines have improved the efficiency of their fleets, yet the Government's response has been to raise the tax on flights by up to 425 per cent. This comes as the travel industry is having to contend with rising fuel prices, the recession and a weak pound. The International Air Transport Association reports that, globally, airlines lost $17 billion last year. When the biggest increases in duty are due, next November, some airlines may not be around to see them.

2 Private jets exempt
While travelers on commercial aircraft have to pay the tax, passengers on private jets do not. In other words, Roman Abramovich, Sir Philip Green, Simon Cowell and company will continue to be exempt, but families going on summer holiday will now pay even more. If this is really a green tax, then surely fuel-inefficient private jets should face the most severe penalties.

3 Cargo exempt
While ordinary passengers face paying up to 118 per cent more, cargo companies will avoid any such charges. A poll this week found that 80 per cent of Britons believe the tax should be extended to cover cargo and private jets. Presumably, the 20 per cent who disagreed work for cargo companies or enjoy the use of private jets.

4 Caribbean crisis
The Caribbean has been unjustly hit under the tax. The Government's banding system means that travellers to Los Angeles (11 hours) will incur less duty than those flying to Barbados (eight hours).

5 Egyptian error
It is equally hard to understand why Tunisia is put in Band A (£11), when Egypt is in Band B (£40), alongside the US, Canada, the UAE and Oman. In other words, a 2,100-mile flight to Sharm El Sheikh will cost the same as a 5,500-mile flight to Los Angeles. Malaysia is among the other destinations to be disproportionately penalised.

6 Premium penalty
Premium-economy passengers will be hit hardest. The duty on their seats, which offer a little more legroom for a modest fee, will rise from £80 to £150 by the end of next year. This means a family of four flying to the Caribbean will pay £600 in duty, up from £320 – the same as those in first class or business class. Britain's leading tour operators say they might have to abandon their premium-economy cabins.

7 Economic impact
For evidence of the potential impact of this tax increase, look to Holland. Last year the Dutch government abandoned its equivalent of APD. It had brought in more than 300 million euros in revenue in a year, but the wider cost to the economy – thanks to the increased cost of travelling to Holland – was estimated at more than 1.2 billion euros. Britain, lagging behind the world in climbing out of recession, can not afford to make a similar mistake.

8 Environmental damage
The Government sold APD to the public as a "green" tax, yet not a penny has been spent on environmental causes. The tax generates £2 billion a year. The new system is expected to bring in £3.5 billion by 2012. Yet airlines are adamant that they already cover the cost of their carbon emissions. This tax, based on distance travelled, does not reward those who improve fuel efficiency. Environmental groups say it could slow investment in greener technologies and deter passengers from offsetting emissions on the grounds that they are already "doing their bit" by paying APD.

9 Domestic decline
Given that we are counting down to the Olympics in 2012, is raising APD by up to 118 per cent the best way to promote tourism to Britain? Foreign passengers pay the tax on their return leg. The UK is alone in Europe in having such a tax. Of course, this Government has never demonstrated much of a commitment to an industry that brings in £114 billion a year – there have been eight different tourism ministers in 12 years.

10 Regional penalties
Anyone travelling on a low-cost airline from the British regions to connect to London airports and on to Europe will have to pay the increased tax not just on one flight but on two. We can therefore expect travellers from the regions to avoid London, and the tax, by picking up their long-haul connections in Amsterdam.

Asia Pacific to Take Lead
"Twenty years from now more than 40 percent of the world's airline traffic will begin, end or take place within the Asia Pacific region," according to the Boeing's Vice President - Marketing, Randy Tinseth. "That's a big leap for a region that was not even mentioned in our earliest Boeing market forecasts back in the 1950s."

Tinseth goes on to say "between now and 2028, Asia Pacific air travel will grow from 32 percent of the world market to 41 percent."

In light of this and the considerable increase in charter and lease enquiries received from the Asia Pacific region in the past two months, Air Charter International is focusing a large proportion of their efforts to servicing aircraft requirements for this region.

Seeing airlines such as Air Asia X regularly opening new routes including Chengdu in China and Abu Dhabi in the Middle East is a positive sign for the recovery of the aviation market.

Having recently set up regional offices in Sydney Australia, specifically for the Asia Pacific region, there has been a steady rise in business and a focus on building sound relationships between Air Charter International and aircraft operators and clients in the region, ensuring that all enquiries can be dealt with professionally.

"Making sure we are well represented in this region is vital to the success of our business,” said Stuart Wheeler, CEO. “We are committed to sourcing the best possible solutions for all of our customers and are optimistic with regards to the continued increase is charter and lease business in Asia Pacific.”

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