Proposed UK air travel levy rejected

The British government said yesterday it would not implement a suggested £1 levy on all air passengers leaving the UK. Britain's Civil Aviation Authority had put forward the plan to fund protection for travellers if their airline went bust.

"The government has decided not to implement the Civil Aviation Authority's recommendation for a £1 levy," the Department for Transport said in a written statement.

"The attractions of the CAA scheme are outweighed by the disadvantages," it said.

The department said it did not believe a compulsory scheme was appropriate, adding that the government did not organise refund schemes for other industries such as retail, building or financial services.

Airlines, which had criticised the levy as unnecessary and said it would have raised ticket prices, welcomed the decision.

"We are pleased that the government has made this decision as there is no justification or need for our customers to pay this cost," a British Airways spokeswoman said.

Low-cost carrier easyJet earlier said the levy would have created a £250 million fund within three years, way out of proportion to what would be needed to compensate passengers.

Chief Executive Ray Webster said commercial insurance and voluntary codes of conduct provided passengers with adequate protection.