The Federation of Tour Operators (FTO) lost its claim for £50m compensation from the Government today after the Court of Appeal in London rejected its appeal against a High Court judgement last year.
The organisation was seeking damages for the hurried doubling of Air Passenger Duty (APD) last year. The way the Government introduced the increase meant that tour operators were forced to pay the increased APD for passengers who had already booked holidays. Airlines, however, were able to pass on the increase to customers.
The High Court said in 2007 that there were no grounds for questioning the legality of the APD charge, but did accept that tour operators were left in a costly position. The Court of Appeal rejected the FTO's challenge to this ruling today. Responding to today's ruling, the FTO said it was reviewing its options.
In a statement the FTO said: 'The Treasury has severely and unfairly penalised the tour operators and did not create a level competitive playing field. At a time when the economy needs stability and confidence, the wider business community as a whole will also note with concern that the Court in its deliberations established that the increase was in practice a retrospective tax, and that a key driver for the Government's action was simply to raise revenue, not just for supposed environmental benefits, reflecting what the FTO and its members have publicly stated from the outset.' |
