Home Money Air India boss warns Reeves tax raid could deter UK expansion

Air India boss warns Reeves tax raid could deter UK expansion

0 comments
Review: Rachel Reeves revealed plans to increase tax rate for air travelers

The boss leading a rapid expansion at India’s flag carrier has warned that the UK could miss out on a boom in demand for flights from the subcontinent, thanks to Rachel Reeves’ Budget tax raids.

Campbell Wilson, who takes over at the helm of Air India in 2022, told the Mail that increases in air passenger charges (APD) would be “in the back of our minds” as the airline assessed its route plans for the coming years.

It comes after fierce criticism of the Chancellor from other airline bosses after she revealed plans to increase the rate of APD, a tax charged on all passenger flights from British airports.

Currently, UK business class passengers pay from £13 on domestic flights to £200 on longer international journeys.

But from April next year this will rise to £14 on domestic flights and £202 on longer international flights and could rise further.

Economy seat flight bookings will not be affected by the increase.

Wilson added: “We encourage policies that reflect the positive and social impact of aviation as opposed to those that simply target revenue generation.”

Review: Rachel Reeves revealed plans to increase tax rate for air travelers

You may also like