3rd Runway scrapped and per-plane tax welcomed
May 13th, 2010 by elisa

Plans for a third runway at Heathrow have been scrapped by the new Conservative-Liberal Democrat government it has been announced. No new runways at Gatwick or Stansted will be allowed under a joint policy agreement either. Instead the new coalition government will work on establishing a high speed rail network.

The new Government has also agreed to adopt a per-plane tax which has been welcomed by ABTA.

ABTA chief executive Mark Tanzer said: “We have always stated that the travel industry should be taxed fairly and that a system more closely aligned to the efficiency of aircraft and distance travelled is the fairest way to achieve this, and we welcome the Government’s move to adopt a per plane tax.

“However, the amount of this taxation must not be set at a punitive level and when the European Union’s Emissions Trading Scheme comes into force in 2012 it should be scrapped.

“Before the Government makes final decisions about individual airports it needs to consider the overall capacity needs of the UK. Banning any airport expansion will severely damage UK PLC without significant environmental benefits as air traffic will simply migrate to our competitors on the continent.”

ABTA said it will be looking to meet with key staff as soon as possible.

Meanwhile, Cheapflights wants the Government to ensure flight prices do not rise at the predicted 5% by the end of 2010. It is also calling for further research into volcanic ash effects on aircraft and for improving consumer confidence in the aviation industry following the recent airspace closures and the BA strikes.

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