TRAVELLERS GO OUT OF THEIR WAY (LITERALLY) TO AVOID APD

Thanks to a recent report from Sainsbury's Finance claiming that families are planning to avoid or reduce APD by taking more staycations and long-haul flights from other European countries, APD is back in the news again.

Not that it’s been out of the news much (try Google-ing it). Since it was introduced in 1994 to combat the lack of VAT on fuel, APD has been the subject of many an angry rant from leisure and business travel journalists, who fight back with renewed vigour each time an additional price hike is announced.

And who can blame them? What started out as an extra £10 per passenger per long-haul economy flight from the UK peaks at an incredible £125 come 2016. The Government defends APD tooth and nail, claiming it’s a valid eco-tax. But they would, wouldn’t they? It accounts for £2.6bn in additional revenue to the treasury.

My question is whether APD is about to back fire on the Government as savvy business travellers get wise and fly short haul out of the UK using Charles de Gaulle, Schiphol or Frankfurt as their long haul hubs. This would certainly reduce the APD coffers in the short term and damage the UK economy in the long term.

If APD really is a green tax as the Government claims, maybe they need to look at ways to incentivise airlines to be more environmentally friendly rather than penalising the passengers who – just possibly – think they’re already paying enough taxes as it is.

Posted by David Chapple - talk to him on Twitter @btshowlondon

IS THE DREAMLINER THE KING OF GREEN?

In February 2008, we were lucky enough to unveil the Dreamliner to business travel buyers at the Business Travel Show in London. Four years on and it has finally taken to the skies, as reported recently on BBC Breakfast. The impact it will have on the business traveller has been widely reported, but I’m more interested in what the launch means to the business travel buyer, particularly on an environmental level.

The Dreamliner is often compared to the Airbus A380, simply because they are the two most recent long-haul launches. But while Airbus has focused on increasing capacity to reduce environmental impact by creating the lowest fuel-burn-per-seat ratio, Boeing has achieved its environmental credentials in an entirely different way altogether.

Boeing has created a medium sized plane with two engine platforms (Airbus has four) and engineers have also used the highest carbon composite to date resulting in a plan that’s 20 per cent lighter and, as a result, 20 per cent more fuel efficient than existing planes of the same size.

With 821 orders for Boeing compared to 236 for the Airbus, the market seems to be voting for the Dreamliner, but it will be interesting to see how the travel buyers vote. But comparisons aside, the fact that both airlines are now entering the design process with ‘green’ at the top of the agenda, is surely a good move for everyone. 

Posted by David Chapple