Sharp tax increase boosts U.K. airfares
Feb 11th, 2007, 01:59 PM
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Sharp tax increase boosts U.K. airfares
Has anyone seen the article attributed to USA Today regarding the increase in the UK's "Air Passenger Duty" on long-haul flights, which doubles the tax to nearly $300 for an economy class ticket between the USA and the U.K? There is also supposed to be an increase in taxes on domestic and intra-European flights from the U.K.
Feb 11th, 2007, 02:13 PM
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I wouldn't use USA Today for any reliable information.
Here are the taxes of a typical NYC-LHR non-stop economy fare roundtrip:
$2.50 US 9/11 Security Fee
$15.10 US Departure Tax
$4.50 US Passenger Facility Charge
$15.10 US International Arrival Tax
$5.00 US Customs
$7.00 US Immigration Fee
$5.00 USDA Animal and Plant Health Inspection Service (APHIS) Fee
£13.00 UK Passenger Service Charge
£40.00 UK Air Passenger Duty
The total is about $54.20 + £53.00. By today's exchange rate, it's about $160 total.
The UK Passenger Service Charge seems to be only £7.60 if it's roundtrip to Gatwick.
The recent increase was the UK Air Passenger Duty, which went up from 20£ to 40£.
No mistake, this total tax is really really high for fares going to the UK; but it's not $300.
Here are the taxes of a typical NYC-LHR non-stop economy fare roundtrip:
$2.50 US 9/11 Security Fee
$15.10 US Departure Tax
$4.50 US Passenger Facility Charge
$15.10 US International Arrival Tax
$5.00 US Customs
$7.00 US Immigration Fee
$5.00 USDA Animal and Plant Health Inspection Service (APHIS) Fee
£13.00 UK Passenger Service Charge
£40.00 UK Air Passenger Duty
The total is about $54.20 + £53.00. By today's exchange rate, it's about $160 total.
The UK Passenger Service Charge seems to be only £7.60 if it's roundtrip to Gatwick.
The recent increase was the UK Air Passenger Duty, which went up from 20£ to 40£.
No mistake, this total tax is really really high for fares going to the UK; but it's not $300.
Feb 11th, 2007, 02:29 PM
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What makes it worse is that while normally a tax increase such as this (£20 to £40) is applied only on new tickets, the UK government in its finite wisdom is applying the tax retroactively. At first airlines announced they would eat the tax increase but as I understand it from another thread, American Airlines will be collecting the extra £20 upon check in.
Feb 11th, 2007, 09:20 PM
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janisj, Interesting that you should say it's old news since it was in today's (Sunday Travel Section) edition of the Seattle Times. I did see it mentioned of the tax increase in El País and the International Harold in early January, but didn't pay attention to it since we seldom travel to or from the UK. Thought it might be of interest to those flying Ryan Air and other UK based airlines.
Feb 11th, 2007, 10:27 PM
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The interesting question is whether Robert2533 has actually bothered reading the article in McNews he's quoting (www.tiny.cc/rSojw)
Because try as I might - and America's favourite colouring book doesn't exactly stretch the intellect - I can't see any reference to "doubling the tax to nearly $300"
Indeed the article is, by the standards of the poster's reference to it, a model of precision. The tax, it says, "doubles the country's Air Passenger Duty on long-haul flights to 40 British pounds for economy class"
Quoting that comic as a source for anything is bizarre. Misquoting it as spectacularly as the poster has done requires heroic levels of sloppiness.
Incidentally, the tax isn't " really really high for fares going to the UK": it applies only to flights OUT of the UK.
Because try as I might - and America's favourite colouring book doesn't exactly stretch the intellect - I can't see any reference to "doubling the tax to nearly $300"
Indeed the article is, by the standards of the poster's reference to it, a model of precision. The tax, it says, "doubles the country's Air Passenger Duty on long-haul flights to 40 British pounds for economy class"
Quoting that comic as a source for anything is bizarre. Misquoting it as spectacularly as the poster has done requires heroic levels of sloppiness.
Incidentally, the tax isn't " really really high for fares going to the UK": it applies only to flights OUT of the UK.
Feb 11th, 2007, 10:44 PM
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Here Here xyz123 !!!
And is the world a much better, healthier, safer, cleaner and not warming up kind of place anymore since this ridiculous, money grabbing greedy wasteful government implemented this tax? Answer No
And now they are planning to charge motorists up to £1.30 a mile to travel in their cars whilst being tracked by satellite.
When is the next election?
Thats my Monday Morning rant, have a good day.
;-)
Muck
(Fodors Police don't like me criticising environmental policy it'll be pulled)lol
And is the world a much better, healthier, safer, cleaner and not warming up kind of place anymore since this ridiculous, money grabbing greedy wasteful government implemented this tax? Answer No
And now they are planning to charge motorists up to £1.30 a mile to travel in their cars whilst being tracked by satellite.
When is the next election?
Thats my Monday Morning rant, have a good day.
;-)
Muck
(Fodors Police don't like me criticising environmental policy it'll be pulled)lol
Feb 11th, 2007, 11:16 PM
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Even if the tax is only on departures from the UK, it's still a significant increase for US-origin customers who have round-trip tickets to the UK, because they will be charged that new additional tax on their departure leg.
What this does mean is that the strategy of getting a cheap roundtrip ticket to London and then using budget carriers to get around Europe and then flying back to London and departing from there is much less likely to be economically viable. But I've found this was already the case in the last couple years.
What this does mean is that the strategy of getting a cheap roundtrip ticket to London and then using budget carriers to get around Europe and then flying back to London and departing from there is much less likely to be economically viable. But I've found this was already the case in the last couple years.
Feb 12th, 2007, 12:51 AM
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This tax increase was discussed a week or so ago on several threads her.
http://www.fodors.com/forums/pgMessa...t=0&screen
http://www.fodors.com/forums/pgMessa...t=0&screen
Feb 12th, 2007, 12:59 AM
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Given the price of a lang haul ticket does 20 quid extra really make such a huge difference? The same on short haul where the increase is a fiver. Sorry but I can't see why everyone is whingeing about it so much. The Dutch government are due to implement something similar and introduce "road pricing" so we pay for every km we travel - on top of all the other taxes we pay.
Feb 12th, 2007, 11:56 AM
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In response to flanneruk's comments, here is the article from the link so kindly provided, including the reference to “The increase boosts the already high total cost of taxes and fees in economy class between the USA and the U.K. to nearly $300, more than double the amount levied on flights to rival low-cost hub Amsterdam.”
U.K.'s new tax increase means unfriendlier skies
Updated 2/2/2007 11:26 AM ET
By Gene Sloan, USA TODAY
Forget London. If you're looking for a deal on a flight to Europe, Amsterdam is now the place to go.
That's the bottom line in the wake of sharply higher British airline taxes that took effect Thursday.
The controversial change, announced in December by United Kingdom Chancellor Gordon Brown, doubles the country's Air Passenger Duty on long-haul flights to 40 British pounds for economy class, or about $78 (the premium-class tax also doubles, to 80 pounds, or about $157). The increase boosts the already high total cost of taxes and fees in economy class between the USA and the U.K. to nearly $300, more than double the amount levied on flights to rival low-cost hub Amsterdam.
"It (now) makes a lot of sense to use airports outside the U.K. for getting to Europe," says Tom Betts, editor of flycheapo.com, a British-based website that focuses on low-cost flights in Europe. "There is a real danger (to British airlines) of Americans avoiding the United Kingdom."
Indeed, with the tax increase, the total price of a round-trip ticket from New York to London, long the low-cost hub for Europe-bound Americans, can now be $20 higher than a round-trip to Amsterdam — a major flip-flop in the old rule of thumb that London always was a tad cheaper. Non-stop flights between New York and London for travel in March were selling this week on Orbitz.com for $517, round trip (a fare of $238 plus $279 in taxes and fees). Between New York and Amsterdam for the same days, they were $497 (a fare of $396 plus $101 in taxes and fees).
The United Kingdom also boosted taxes Thursday on domestic and intra-European flights by 5 pounds, or about $10. Betts notes that the increase makes London less appealing as a base for Americans who plan to visit multiple European cities using discount air carriers such as Ryanair and easyJet.
In announcing the increases on Dec. 6, Brown said the money would go toward improvements in public transportation and environmental programs.
The tax has been controversial in England and caused modest confusion, in part because it's retroactive to passengers who booked before it was announced. The result: Passengers who had paid for their tickets in full before Dec. 6 are now getting last-minute bills for the additional money, and airlines say they won't let passengers board unless they pay up.
Holding a ticket for an upcoming flight to, from or through the U.K.? Betts says you should check immediately with your airline to see how much extra you owe — if anything. In general, if you booked a flight:
•Before Dec. 6. You owe the additional tax and must pay the airline before you depart. Some airlines, such as Virgin Atlantic, are letting passengers pay at the airport when they arrive. Others, such as Ryanair, require passengers to pay in advance.
One exception is British Airways, which is absorbing the extra tax for those who paid for their tickets before Dec. 6 — 900,000 in all — at a cost of more than $20 million.
•After Dec. 6. You already paid the additional tax. As soon as the tax was announced, airlines added it into their reservation computers.
The tax does not apply to travelers who are transiting through a British airport only on their way somewhere else.
U.K.'s new tax increase means unfriendlier skies
Updated 2/2/2007 11:26 AM ET
By Gene Sloan, USA TODAY
Forget London. If you're looking for a deal on a flight to Europe, Amsterdam is now the place to go.
That's the bottom line in the wake of sharply higher British airline taxes that took effect Thursday.
The controversial change, announced in December by United Kingdom Chancellor Gordon Brown, doubles the country's Air Passenger Duty on long-haul flights to 40 British pounds for economy class, or about $78 (the premium-class tax also doubles, to 80 pounds, or about $157). The increase boosts the already high total cost of taxes and fees in economy class between the USA and the U.K. to nearly $300, more than double the amount levied on flights to rival low-cost hub Amsterdam.
"It (now) makes a lot of sense to use airports outside the U.K. for getting to Europe," says Tom Betts, editor of flycheapo.com, a British-based website that focuses on low-cost flights in Europe. "There is a real danger (to British airlines) of Americans avoiding the United Kingdom."
Indeed, with the tax increase, the total price of a round-trip ticket from New York to London, long the low-cost hub for Europe-bound Americans, can now be $20 higher than a round-trip to Amsterdam — a major flip-flop in the old rule of thumb that London always was a tad cheaper. Non-stop flights between New York and London for travel in March were selling this week on Orbitz.com for $517, round trip (a fare of $238 plus $279 in taxes and fees). Between New York and Amsterdam for the same days, they were $497 (a fare of $396 plus $101 in taxes and fees).
The United Kingdom also boosted taxes Thursday on domestic and intra-European flights by 5 pounds, or about $10. Betts notes that the increase makes London less appealing as a base for Americans who plan to visit multiple European cities using discount air carriers such as Ryanair and easyJet.
In announcing the increases on Dec. 6, Brown said the money would go toward improvements in public transportation and environmental programs.
The tax has been controversial in England and caused modest confusion, in part because it's retroactive to passengers who booked before it was announced. The result: Passengers who had paid for their tickets in full before Dec. 6 are now getting last-minute bills for the additional money, and airlines say they won't let passengers board unless they pay up.
Holding a ticket for an upcoming flight to, from or through the U.K.? Betts says you should check immediately with your airline to see how much extra you owe — if anything. In general, if you booked a flight:
•Before Dec. 6. You owe the additional tax and must pay the airline before you depart. Some airlines, such as Virgin Atlantic, are letting passengers pay at the airport when they arrive. Others, such as Ryanair, require passengers to pay in advance.
One exception is British Airways, which is absorbing the extra tax for those who paid for their tickets before Dec. 6 — 900,000 in all — at a cost of more than $20 million.
•After Dec. 6. You already paid the additional tax. As soon as the tax was announced, airlines added it into their reservation computers.
The tax does not apply to travelers who are transiting through a British airport only on their way somewhere else.
Feb 12th, 2007, 12:15 PM
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In the grand scheme of things no it is not a huge expense. But it is very galling to get an e-mail from AA saying in effect "please pay us an extra $40 when you leave in August" and now my cheap budget flights are not so cheap anymore. This tax has made me more anti-green.
Feb 12th, 2007, 12:19 PM
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Robert2533, I receive an e-mail about two weeks ago from Virgin Air that I would need to pay the tax. I purchased my ticket on Dec 12. I called the US number for VA and the agent did not know anything about this and she even asked her supervisor. How do I find out if I have paid the tax or not? The e-mail was of no help in this regard.
Feb 12th, 2007, 12:37 PM
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This is a United fare breakdown for ORD-LHR: (Note the fuel surcharge)
Selected itinerary price details
Traveler Base fare Taxes & fees* Total
Adult 1 USD 522.00 USD 270.60 USD 792.60
Total price: USD 792.60
*Additional taxes/fees/surcharges (award travel is exempt from select taxes/fees/surcharges):
International Travel (including Puerto Rico and U.S. Virgin Islands)
Airport passenger facility charges (PFCs) of up to $18 roundtrip
September 11th Security Fee of $2.50 per enplanement at a U.S. airport (up to $5 one way and $10 roundtrip)
Other government taxes and fees (including U.S. government excise tax) of up to $140 based on destination; total may vary slightly based upon currency exchange rate at time of purchase
Taxes and fees are subject to change without notice and at the discretion of each country’s government.
Carrier-imposed fuel surcharges (YQ) of up to $150 per direction of travel, and which are subject to change at United’s discretion, without notice
† A flight segment is defined as each sector of an itinerary that involves one takeoff and one landing
Close
Selected itinerary price details
Traveler Base fare Taxes & fees* Total
Adult 1 USD 522.00 USD 270.60 USD 792.60
Total price: USD 792.60
*Additional taxes/fees/surcharges (award travel is exempt from select taxes/fees/surcharges):
International Travel (including Puerto Rico and U.S. Virgin Islands)
Airport passenger facility charges (PFCs) of up to $18 roundtrip
September 11th Security Fee of $2.50 per enplanement at a U.S. airport (up to $5 one way and $10 roundtrip)
Other government taxes and fees (including U.S. government excise tax) of up to $140 based on destination; total may vary slightly based upon currency exchange rate at time of purchase
Taxes and fees are subject to change without notice and at the discretion of each country’s government.
Carrier-imposed fuel surcharges (YQ) of up to $150 per direction of travel, and which are subject to change at United’s discretion, without notice
† A flight segment is defined as each sector of an itinerary that involves one takeoff and one landing
Close
Feb 12th, 2007, 12:42 PM
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<b>Fuel surcharge is not a tax!</b>
Reporters should know about that before they write a piece on aviation or travel. It's just a way for a carrier to mask the fare, and in some cases, charge extra for people using mileage for travel. <b>It's a scam!</b>
Fuel prices go up and down, and costs of everything - catering, interest payment for the planes, salaries, airport landing fees - go up and down. Nothing special about the case of fuel. The fuel surcharge is just part of the fare.
Reporters should know about that before they write a piece on aviation or travel. It's just a way for a carrier to mask the fare, and in some cases, charge extra for people using mileage for travel. <b>It's a scam!</b>
Fuel prices go up and down, and costs of everything - catering, interest payment for the planes, salaries, airport landing fees - go up and down. Nothing special about the case of fuel. The fuel surcharge is just part of the fare.
Feb 12th, 2007, 01:04 PM
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rkkwan is absolutely correct. There is little difference in taxes/fees on a UAL nonstop ORD-AMS:
Selected itinerary price details
Traveler Base fare Taxes & fees* Total
Adult 1 USD 858.00 USD 240.40 USD 1,098.40
Total price: USD 1,098.40
*Additional taxes/fees/surcharges (award travel is exempt from select taxes/fees/surcharges):
International Travel (including Puerto Rico and U.S. Virgin Islands)
Airport passenger facility charges (PFCs) of up to $18 roundtrip
September 11th Security Fee of $2.50 per enplanement at a U.S. airport (up to $5 one way and $10 roundtrip)
Other government taxes and fees (including U.S. government excise tax) of up to $140 based on destination; total may vary slightly based upon currency exchange rate at time of purchase
Taxes and fees are subject to change without notice and at the discretion of each country’s government.
Carrier-imposed fuel surcharges (YQ) of up to $150 per direction of travel, and which are subject to change at United’s discretion, without notice
† A flight segment is defined as each sector of an itinerary that involves one takeoff and one landing
Selected itinerary price details
Traveler Base fare Taxes & fees* Total
Adult 1 USD 858.00 USD 240.40 USD 1,098.40
Total price: USD 1,098.40
*Additional taxes/fees/surcharges (award travel is exempt from select taxes/fees/surcharges):
International Travel (including Puerto Rico and U.S. Virgin Islands)
Airport passenger facility charges (PFCs) of up to $18 roundtrip
September 11th Security Fee of $2.50 per enplanement at a U.S. airport (up to $5 one way and $10 roundtrip)
Other government taxes and fees (including U.S. government excise tax) of up to $140 based on destination; total may vary slightly based upon currency exchange rate at time of purchase
Taxes and fees are subject to change without notice and at the discretion of each country’s government.
Carrier-imposed fuel surcharges (YQ) of up to $150 per direction of travel, and which are subject to change at United’s discretion, without notice
† A flight segment is defined as each sector of an itinerary that involves one takeoff and one landing
