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Old 22nd Jun 2010, 10:30
  #176 (permalink)  
ExecClubPax
 
Join Date: Jan 2010
Location: West Sussex
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It is muted that today's emergency budget will contain measures to change airline passenger tax from a per seat to a per aircraft basis.

This could have major ramifications for BA and any other "full service" airline operating out of the UK. Clearly, the tax element would have to be passed on to the consumer as is the case now. No matter how full, the stated rate of APT for that aircraft will be payable. So, the amount of tax payable by a passenger on an aircraft operating in 4 class mode (many BA long haul flights) with low density seating could be much higher than that paid by a passenger flying with an airline operating a single or two class aircraft of the same type. So at a time when BA is struggling to increase its "premium" product, the Coliation Government is loading the ticket price such that J and First Class travel becomes unaffordable. So where does that leave BA which is already facing continuing IA and the prospect of no additional runway capacity at EGLL.

Perhaps this is another reason why UNITE/BASSA should wake up and consider the implications. If it intends to maintain the current cabin class structures, BA will have to ensure it operates its long haul flights with the highest possible load factors in order to minimise the impact of APT on its customers. In turn, it could mean the axing of some multi flight per day destinations such as KLAX for instance which gets 3. Reductions in services means less cabin crew required and in turn that could lead to composary redundancies.

The combination of an aviation-phobic Government, disaffected work force, cheaper working practices adopted by main competitors and no room for expansion at EGLL, makes it's hard to see a future for BA and its blinkered cabin crew.

Perhaps to offset this, BA will have to transfer its centre of operations to a European airport where APT is not so high, if payable at all. Again, the impact on UK based support industries and would be profound. I will be looking very closely to fly from Amsterdam, Paris, Frankfurt etc in the future in order to minimise the impact of this tax. At least EHAM, LFPG and EDDF can be reached by train.
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