easyJet, Europes leading low cost airline, have launched a campaign to generate public support in advance of the Governments decision on the proposed CAA Air Passenger Travel levy. The unnecessary tax to cover the costs of a possible scheduled airline failure would cost consumers £250 million!

easyJet supports the principle that air travellers are protected against the failure of airlines, as seen earlier this year with the collapse of EUJet. However, the airline is opposed to a set rate passenger levy to generate an extortionate and unnecessary amount of money, when there are much more efficient and cost effective methods of achieving this goal.

easyJet is opposed to the plan because:

The EU has rejected this idea, considering it to be unnecessary and too bureaucratic!!!

If the UK Government goes ahead with a levy, it will place the UK aviation and tourism industry at a competitive disadvantage by making it more expensive to fly from the UK.

A £1 per passenger levy may appear a reasonable amount, but in reality this cover can be provided for a fraction of the cost. Initial indications are that this would be in the range of 10- 15 pence per passenger based on easyJets financial strength

£250 million to be raised in the first 2-3 years is exorbitant. According to industry experts the cost of repatriating and refunding EUJets passengers after its collapse would have been in the region of £6 million, including hotel accommodation

The fund is a sign of the CAAs failure to protect the interests of consumers when an airline goes bankrupt, as the CAA should be more effective at ensuring scheduled airlines are financially secure.

Instead of introducing a tax that would cost UK consumers £250 million, easyJet calls for the Government to take more proactive, efficient measures that are still in the interests of the consumer and the UK economy.

Instead of simply slapping a fixed fee on each passenger, easyJet suggests the following:

Encouraging airlines to offer their passengers a form of protection.

Ensuring all airlines provide clear information, leaving passengers in no doubt as to what protection is offered.

Establishing a UK/EU code of conduct for the voluntary repatriation of stranded passengers, along the lines of easyJets rescue package for EUJet passengers.

If the levy is introduced, it is essential the Government evaluate the full implications, consider the appropriate amount that would be needed for tour operators and scheduled airlines separately and apply the new tax on UK departing air travellers in a manner that will minimise its impact on both industries. The Government should be able to demonstrate in the greatest transparency the logic behind its decision. easyJet would insist on:

An opt-out for those airlines wishing to offer insurance to their passengers against failure.

A banded levy, that differentiates between short haul and long haul flights as well as different classes of passengers.

Strict rules regarding the management of the fund, which will also govern how any increases in the levy, will be handled.

easyJet is launching a campaign today calling for consumers to forward their thoughts on the issue, by emailing keepfareslow@easyjet.com. The airline will contact MPs prior to the vote on Monday evening, with this consumer feedback and throughout the debate that will take place in Parliament.

Ray Webster, easyJet Chief Executive commented easyJet does not see why the CAA insists on managing the means by which protection is provided, when airlines can provide this far more efficiently through available commercial insurance and using voluntary codes of conduct as seen during the EUJet failure. A set rate levy is not in the interests of the consumers, the CAA claims to be attempting to protect.

Also as Europes leading low-cost airline, easyJets preference lies with a pan-European approach to such issues instead of a UK centric solution, this ultimately will put the UK airline industry at a disadvantage to its competitors. At a time of high fuel prices, the last thing airlines need is more red tape from Government.

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For more information contact the easyJet press office: Tel: 01582 525252