Aviation's duty to climate change

In the 2007 Budget, the Government announced a consultation on replacing Air Passenger with Aviation Duty. The Treasury document Aviation duty: a consultation sets out the options for implementing Aviation Duty.

The consultation looks at how the duty can be switched from passengers to planes. In early March, the story of an American Airlines flight which flew from Chicago to London with just five passengers illustrated the case for taxing planes over passengers – and caused outrage in the press.

It is proposed that Aviation Duty will be based on flight distance and the 'Maximum Take-Off Weight' of the plane as the most effective measure. The consultation essentially asks for responses on the detail of implementation - though, as ever, there is scope for more general responses.

The move to Aviation Duty is welcomed by Friends of the Earth, which states it "could be a major step in the right direction".

The Campaign for Better Transport has also welcomed the transfer to Aviation Duty, stating, "the aviation industry currently pays no fuel tax or VAT so it's right they contribute something to the economy. But we need to see investment in sustainable alternatives to short-distance air travel, such as rail links". Perhaps respondents to the consultation should ask for revenue from Aviation Duty to be ringfenced for such schemes.

Such ringfencing would surely be supported by the RMT (the rail, maritime and transport workers' union) which makes the environmental case for shifting freight transport from air to rail and inland waterway in its recent submission to the Transport Select Committee. The RMT and environmental campaigners will be pleased to know that Aviation Duty, unlike Air Passenger Duty is also proposed to apply to freight as well as passenger flights.

For a good background on the environmental case for reducing air travel see AirportWatch or Greenpeace. However, the consultation document states that "the Government remains committed to supporting the sustainable growth of the aviation industry", yet also admits that while currently accounting for 6.3% of UK greenhouse gas emissions, aviation is projected to increase to 21% by 2050. So much for joined-up government!

The deadline for responses to the consultation on Aviation Duty closes on 24th April 2008 – and it's proposed that Aviation Duty will replace Air Passenger Duty from 1st November 2009.