p5 nov21 19/11/08 21:58 Page 5
ttglive.com
news
Fears APD may rise
Interest rate cut
threatens income
THE PROSPECT of record low interest rates in
Chris Gray.
was concerned about the lack of information on 2009 will reduce vital income for travel compa-
CONCERNS are growing that the government is Aviation Duty and would be “disappointed” if nies and consortia.
about to postpone plans to replace Air Passenger there was an increase in APD. Following this month’s record 1.5% cut there
Duty and instead hit the industry with another Abta head of policy David Marshall said the has been speculation the Bank of England might
tax increase. association wanted assurances that if there was slash rates to 1% in 2009 to stimulate the economy.
Abta and airlines fear chancellor Alistair an increase in APD, the industry would have a Most travel companies generate revenue
Darling will include the increase in Monday’s pre- year’s notice rather than the six weeks it was from the interest on customer payments and for
budget report when he is expected to announce given when the tax was doubled last year. consortia their payment schemes’ interest is a
income tax cuts to stimulate the economy. Flybe’s head of public affairs, Niall Duffy, major source of revenue.
He had been expected to use the statement added: “If the chancellor gives tax cuts with one Advantage managing director John McEwan
to reveal details of Aviation Duty, the proposed hand and with the other adds a rise in APD then said: “Interest is significant but not our largest
replacement for APD, which was scheduled the aviation industry and travellers are entitled revenue stream. We have worked out what we
to come into force in November 2009. to be very angry about it.” think rates are going to be over the next 12
However, sources said there is a “vacuum” of Abta and the FTO have warned the Treasury months and taken action to protect our position.
information from the Treasury, suggesting the that the delay in announcing details is hitting “We have lots of other things going on to
new tax, widely criticised, is being postponed. operators planning brochures for winter 2009. mitigate that, including bringing more suppliers
Abta chief executive Mark Tanzer wrote to into our payments system.”
Darling on Tuesday saying the association ■CAA is staring into a ‘huge black hole’, p12-13 A further rate cut is expected before Christmas.
Abta tells agents to ‘act now’ on insurance
ABTA is urging agents intending to sell travel A deadline for applying to be regulated “They should make the decision about what
insurance next year to ensure they have directly passed on November 15, but Abta head they want to do and get on with it,” he said.
arrangements in place as soon as possible. of financial services Mike Monk said agents Last week it was reported that only four out
From January, agents must either be regulated must get their arrangements with insurance of 5,000 travel companies had applied for full
by the FSA directly or through an insurance com- companies in place soon if they wanted to be regulation, although Acumus Insurance Solutions
pany or broker as an “appointed representative”. approved by January 1. said it was working with 20 companies.
CO-OP SCORES AGAIN:
The Co-operative Travel
Sports and Events has
renewed a deal to
provide travel services
for Manchester United
until 2012. The four-year
deal follows a successful
partnership between
The Co-operative Travel
and Manchester United
in the 2007-08 season.
From far left: Mike
Greenacre, managing
director of Co-op Travel;
Michael Bolingbroke,
chief executive of
Manchester United;
and Neil Braithwaite,
managing director of
the Co-op’s specialist
retail division
21.11.2008 05
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