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Who are the Winners and Losers of the UK APD Reform?

business jet parking

Following the article UK APD Reform – What Business Jet Operators must know?, FCC Aviation asks the question which operators benefit and which lose out under the amended APD rules.

Winners are airline passengers traveling to former band C or D destinations, such as China, India or Brazil, with APD reduced by between 16 and 26 percent. Small and mid-size business jets also benefit in the same way from changes to rates and band structure. But this only if the aircraft's authorized weight is not above 20 tonnes (or 44,000 lbs). Otherwise, APD becomes more costly.

The losers of the latest UK APD reform are precisely operators of bigger business jets. APD increases between 10 and 55 percent depending on the distance of the final destination. Those with short-haul flights and flights to former band B destinations, such as North America or UAE, take the biggest hit. For instance, carrying five passengers from London to New York on board a Gulfstream G550 now costs £2,130.00 for a single flight. This is a 55 percent increase compared to what was charged under the old APD regime (£1,380.00).

Operators of bigger business jets are recommended to closely monitor their annual APD liability if they report APD on a flight by flight basis. With rising APD costs, they seem more likely to exceed the threshold of £5,000.00 triggering the requirement to register for APD.

For more information on UK APD or other European aviation taxes, see the Regulation section of our website.

 

 

 

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