I read an article in Saturday's Daily Telegraph which suggested that the UK Government is contemplating increasing Air Passenger Duty (APD) once again. Why? because they weren't making enough money from it as it stands. Well that is hardly surprising, the UK already has one of the highest APDs in the World and both tourists and business people have a choice of destination, while the domestic travelling public have an obvious choice simply whether to travel or not. As an ex-airline employee I am entitled to a few free tickets (standby at the back of the queue but still well worth having) each year and last week my daughter and I flew to Dubai and back from Heathrow. Ticket = free of charge; APD = £332 (admittedly a little was UAE tax).
The Goverenment could take a lesson from business here, and in particular one of the most successful business sectors in the current UK economic climate; the supermarkets. They know that volume and market share count for more than simple margins. There should be something to be learned also from the impending removal of the 50% income tax band... Why? Because it doesn't make any money!
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