APD to be converted to 4-band system

Old Nov 24, 08, 9:09 am
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APD to be converted to 4-band system

Darling's anouncement means that Air Passenger Duty will be much higher for long haul passengers - no details as yet
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Old Nov 24, 08, 9:27 am
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I was watching the speech but I didn't equate his new 4-band system to automatic higher fees for long haul.

As you say the devils in the detail, which is not yet released.
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Old Nov 24, 08, 9:28 am
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"Air passenger duty will be reformed so that those who travel furthest pay most, Mr Darling says." - BBC

I can imagine that this will simply lead to people choosing to fly to Amsterdam / Paris to avoid excessive payments...! Why does he not just levy it at a flat % I wonder.
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Old Nov 24, 08, 9:41 am
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Jeez ....

Table 7.2: Air passenger duty rates in miles flown

From Nov 1 2009Y / 2010Y / 2009J / 2010J
Band A (0-2000) £11 / £12 / £22 / £24
Band B (2001-4000) £45 / £60 / £90 / £120
Band C (4001- 6000) £50 / £75 / £100 / £150
Band D (over 6000) £55 / £85 / £110 / £170

* If only one class of travel is available and that class provides for seating in excess of 40” then the standard (rather than the reduced) rate of APD applies.

This starts to look very nasty indeed on long-hauls to Asia in J. It will become very attractive to book one-ways out (say, FRA-BKK) and pay cash for a Y connecting flight (booking LHR-BKK via FRA will trigger the full payment I assume), and then use BA Miles to come back. The snag, of course, is that the demise of BMI Diamond Club means that one-way rewards for 50% of a return will no longer be able once the scheme is integrated into M&M.

Last edited by Raffles; Nov 24, 08 at 9:47 am
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Old Nov 24, 08, 9:45 am
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Full details here

http://www.hmrc.gov.uk/pbr2008/pbrn20.pdf
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Old Nov 24, 08, 9:51 am
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Looks like I'll be connecting through DUB/AMS/CDG/etc in future.....

IIRC I can escape the duty if I have an onward ticket within 24 hours; has anybody tried throw-away on that onward segment ?
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Old Nov 24, 08, 9:53 am
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Originally Posted by dgwright99 View Post
The only slight silver lining is that it seems that WT+ is not now classed as premium.

Looks like I'll be connecting through DUB/AMS/CDG/etc in future though...
You will be unofficially connecting - since a through-flight will trigger the higher rate. Of course, this means you'll have no come-back if you book an inflexible ticket and your inbound flight is delayed.

The good news, I suppose, is that this should be offset by reduced fuel surcharges by the time it kicks in.
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Old Nov 24, 08, 9:53 am
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Originally Posted by dgwright99 View Post
The only slight silver lining is that it seems that WT+ is not now classed as premium.

Looks like I'll be connecting through DUB/AMS/CDG/etc in future though...
...and all the big financial companies will now squeeze down further on thier travel policies......
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Old Nov 24, 08, 10:02 am
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Forgive me if I appear simple
But
will this make using Openskies out of ORY or AMS more attractive?
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Old Nov 24, 08, 10:35 am
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How long before it is reflected within the BA boking system ??

I hope this week to book a long haul (in the 50% off BA Miles offer) for travel mid November - 2009 so

Will BA systems change this week and charge me the new rate ?
Will BA systems NOT change this week and then they will charge me the new rate post booking?
Will I get away with the old rate if I book it before their systems change?
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Old Nov 24, 08, 10:38 am
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System will change as soon as BA can programme it .. overnight tonight I would expect. After all, it costs them money if they don't since the Government will invoice BA anyway.

Response to a post elsewhere was that you won't get whacked for the extra if you leave you book now and leave your booking untouched. Any change will result in a recalculation, though.
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Old Nov 24, 08, 10:42 am
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Originally Posted by srt8 View Post
will this make using Openskies out of ORY or AMS more attractive?
Neither more nor less attractive as these flights don't operate to/from/via the UK.

Originally Posted by Quebec5 View Post
I hope this week to book a long haul (in the 50% off BA Miles offer) for travel mid November - 2009
You won't be able to. You can only book BA flights up to 330 days ahead, so the earliest you can book for mid-November 2009 will be mid-December 2008, by which time the 50% offer is due to have expired.
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Old Nov 24, 08, 10:42 am
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Originally Posted by Quebec5 View Post
How long before it is reflected within the BA boking system ??

I hope this week to book a long haul (in the 50% off BA Miles offer) for travel mid November - 2009 so

Will BA systems change this week and charge me the new rate ?
Will BA systems NOT change this week and then they will charge me the new rate post booking?
Will I get away with the old rate if I book it before their systems change?
Don't know when this will be reflected in BA's systems, but I think that last time rates went up BA did not pass on the extra charge to people who had already booked and paid the old rate - they absorbed the cost themselves
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Old Nov 24, 08, 10:47 am
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Originally Posted by Roger View Post
Neither more nor less attractive as these flights don't operate to/from/via the UK.
Erm, that's the point - so they will be even more attractive compared with flying to/from UK. The tax savings will easily exceeed the cost of the connecting flight/train.
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Old Nov 24, 08, 10:53 am
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Originally Posted by dgwright99 View Post
Erm, that's the point - so they will be even more attractive compared with flying to/from UK.
Ah, but you didn't compare with flying from the UK in your original question. I imagine most people reading your post would think you were comparing OneWorld flights now and next year, hence my response.
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