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|  | 05 September 07 | FTO
has lost its court challenge on APD |
The
Federation of Tour Operators (FTO) has lost its challenge
against the government regarding the doubling of Air Passenger
Duty last February.
Although the defeat, the judge on the case, Lord Justice Stanley
Burton found that the government had failed the tour operators
on three accounts due to the lack of advanced warning regarding
the extra charges.
Lord Stanley Burton said that the treasury had failed to
consider the impact on the tour operators from the rise and that
it would of been relatively easy for the government to have
given the travel industry time to adjust.
The FTO has claimed that doubling the APD has cost the trade
over £50 million and had given its competitors an advantage
over them.
Possible appeal
A spokesman for the FTO also hinted at an appeal, he said,
"The Federation of Tour Operators is disappointed that the
High Court ... has failed to uphold the strong case presented to
it.". He added "There are wider potential
international ramifications of the judgment, and these and other
aspects will be considered as the FTO seeks advice on its
grounds for possible appeal".
Despite the comments against the government by the judge, the
ruling ended up in a defeat for the FTO because he ruled that
the Chicago Convention, which established the regulation of air
traffic, doesn't outlaw taxes such as the Air Passenger Duty.
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