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Here comes another surcharge
Mon, 14 Jun 2010
Matthew Marriott, Commercial Director of Hellmann Worldwide Logistics UK, on the governments plans to introduce a 'per-plane' tax, and how he sees it impacting on the air freight industry
I’m sure I’m not alone when it comes to expressing a ‘slight’ concern over the recent announcement by the new coalition government. In what is already a struggling logistics industry due to the general economy and recent volcanic ash disruptions, we run the risk of seeing airlines operating fewer flights, impacting on air freight forwarding.
It’s a fact that airline costing models are based primarily on surcharges – surcharges for baggage, fuel, reserved seats, food… need I go on? The worrying thing about the new per-plane tax is that, in essence, it will just be another surcharge to add to the list, to the detriment of UK industry.
While it is still early days and the real impact to the British industry is not 100% clear, the true concern lies in wondering when, and how much, this will eventually cost us.
If we have to pay this tax, then we need to have a clear calculation model from the airlines that can easily be understood and monitored, as cost increases to UK industry are sensitive, due to the economy and requirement to remain competitive on the world stage of trade.
Ultimately, hiking up prices in the airline industry is going to drive money out of it. Manufacturers and logistics providers will be driven to potentially cut back on air freight and opt for alternative sources of supply.
We already have fuel and war-risk surcharging for exporters and importers, and now the potential of aircraft taxes on a per plane basis will add further misery to a fragile economy. Surely the one thing that seems to be supporting the economy (exports) should be protected until more green shoots appear in other sectors of UK Industry.
See today’s We have mail
It’s a fact that airline costing models are based primarily on surcharges – surcharges for baggage, fuel, reserved seats, food… need I go on? The worrying thing about the new per-plane tax is that, in essence, it will just be another surcharge to add to the list, to the detriment of UK industry.
While it is still early days and the real impact to the British industry is not 100% clear, the true concern lies in wondering when, and how much, this will eventually cost us.
If we have to pay this tax, then we need to have a clear calculation model from the airlines that can easily be understood and monitored, as cost increases to UK industry are sensitive, due to the economy and requirement to remain competitive on the world stage of trade.
Ultimately, hiking up prices in the airline industry is going to drive money out of it. Manufacturers and logistics providers will be driven to potentially cut back on air freight and opt for alternative sources of supply.
We already have fuel and war-risk surcharging for exporters and importers, and now the potential of aircraft taxes on a per plane basis will add further misery to a fragile economy. Surely the one thing that seems to be supporting the economy (exports) should be protected until more green shoots appear in other sectors of UK Industry.
See today’s We have mail
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