Sunday, November 6, 2011

Aviation grappling with new taxes and rules: AAPA

Manila Bulletin
November 6, 2011


Aviation will play a key role in global economic recovery but is struggling to cope with new taxes and regulations, the head of Asia's airline association said Friday.

Governments should remember "that aviation is a key contributor to economic recovery and job creation, led by travel and tourism", said Andrew Herdman, director general of the Association of Asia Pacific Airlines (AAPA).

Herdman, speaking at the annual meeting of the 15-member group, said a growing number of governments had announced plans for new taxes and charges.

He cited Britain's "notorious" Air Passenger Duty and German and Austrian ecological travel taxes, and said travellers were also starting to face quasi-visa "travel authorisation" fees.

The United States charged citizens of visa waiver countries $14 to apply for authorisation to travel, while tourism-dependent Sri Lanka had announced a $50 travel authorisation fee on inbound foreigners.
"Taxing the very people who you want to attract as visitors to your country is neither an effective welcome message nor a good way to develop the tourism industry," Herdman said.
Airlines themselves were increasingly subject to "an ever more complex web" of regulatory requirements.

Herdman also said the European Union had "over-reached its authority" with plans for a carbon tax on carriers flying to and from Europe.

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