by Elizabeth Cole September 14th, 2009
Due to an impending rise in the air passenger duty, many airlines could be finding themselves out of a few different routes. This could not only cause airlines to lose some routes, but it may also cost a lot of people to lose their jobs. If the air passenger duty does increase, it will happen in November.
This new rise in taxes could cause airlines to abandon many routes. This is always bad, but goes double for the current state of the airline industry due to the fact that many airlines have already been cutting back on routes. Many of the routes that have already been cut back are short haul flights in the UK. The Brits that rely on airlines to get them around the country could now suffer because of this new tax.
InsureandGo, a travel insurance specialist, did a report that shows between August 2008 and August 2009 more than 1,000 weekly flights to and from UK airports were scrapped. Most of these flights were canceled due to falling passenger numbers and increasing costs. The company goes on to warn that the plans to raise the air passenger duty will just add more pressure on the airlines.
The founder of InsureandGo, Perry Wilson, said that the rise in the Air Passenger Duty is going to make things much worse for the industry than it already is. If it gets pushed through people can expect to see many more flights cut from the UK as a result. Some airlines have already been pulling out of the UK due to increased airport fees.