The International Air Cargo Association (TIACA) has warned that a rumored move by the UK government to replace the existing Airline Passenger Duty with a new per-aircraft flight fee would result in higher taxation across the air cargo supply chain, increased costs for manufacturers and consumers and deliver no new environmental benefits.

TIACA is adding its voice to those of national associations in the UK, stating that such a change in legislation would see all flights assessed, including all-cargo operations.

“We understand that governments have a responsibility to protect the environment but if such shift did take place in the UK, the reasons behind it are flawed,” said TIACA secretary general Daniel Fernandez. “It would also set a precedent that other countries may follow and further impede the air cargo industry’s ability to meet the needs of global manufacturers and consumers.

“We understand the per-plane fee would ostensibly be imposed for environmental reasons, as a means of addressing aviation emissions of greenhouse gases. While details of the proposed new fee structure are not publicly available, we believe it is unlikely that any of the revenues derived would be directed to environmental betterment and are more likely to go to UK general funds.

“This would impose a tax on the air cargo sector at a time when it is still reeling from the economic downturn and recent shutdowns of European airspace due to the volcanic eruption in Iceland and negatively affect not only airlines but forwarders, shippers and the many businesses that depend on airfreight to run their operations smoothly. Ultimately, any additional costs will be borne by the consumer through higher prices of goods shipped by air,” Fernandez said.

TIACA is highlighting its concerns in letters to the UK government’s Secretaries of State for Business, Transport and the Environment. It will also stress that any new tax burden across the air cargo supply chain would also impair the aviation industry’s ability to continue investing in environmentally-sound new technologies.

Aviation accounts for two per cent of man-made global carbon emissions, and with global demand for passenger and cargo traffic forecasted to increase, it is predicted to grow to three per cent by 2050, according to the UN’s Intergovernmental Panel on Climate Change.

TIACA emphasised that the aviation industry has not been complacent and has made significant progress in reducing its impact on the environment since the beginning of the jet age nearly 40 years ago. Advancements in technology have resulted in a 70 per cent reduction in fuel consumption, and therefore CO2 emissions, when compared to original commercial jets.

Fernandez added: “If the objective is to advance ‘green’ progress in the aviation industry, instead of taxing the sector it would be far preferable to maintain government policies that encourage investments in environmentally responsible technologies.”