Premium Economy flights may be ditched

Tour operators that offer premium economy cabins are threatening to axe the service that provides passengers with extra legroom on long-haul flights.

They say the premium economy cabins may no longer be economically viable if the government goes ahead with its plan to increase Air Passenger Duty (APD) next month.

APD, which all passengers must pay depending on how far they fly and in what cabin, will almost double over the next 14 months.

The duty in premium economy cabins on long-haul flights will rise from £80 to £150 per passenger by the end of 2010. In economy cabins the duty is less, rising from £40 to £75.

Dermot Blastland, chief executive of TUI UK which owns a number of holiday brands including Thomson (www.thomson.co.uk) and First Choice (www.firstchoice.co.uk) said the rise in APD rates were a threat to the commercial viability of premium economy cabins as it constituted a 'significant part of the overall price of the air fare'.

Rival Thomas Cook (www.thomascook.co.uk) said it was also considering the future of its premium economy cabins.

British Airways admitted that the rise in APD would have a detrimental impact on its World Traveller Plus premium economy cabins, which also offer more legroom.

However, the airline said it had no plans to abandon its premium economy cabins, which have become popular with business travellers looking for more affordable flights.

APD was introduced by the government to offset carbon emissions caused by flights but the Treasury has refused to specify how it spends the money raised.

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