Flying and taxes

I see that the consultation launched by David Cameron over imposing tax on air travel to reduce carbon dioxide emissions has run into some flack from people who fear loosing cheap flights. Often these flights are taken on a whim simply because they are there and because they are cheap. I did a fair bit of research into the then emerging low cost carriers when we mounted our campaign against proposals for a massive new airport in Rugby a few years ago. The case for the airport was based on increasing demand for air travel. One of the reasons for the increase in demand was and still is the unfair price advantage enjoyed by air travel as a consequence of less tax than on other forms of transport, particularly no duty on aviation fuel and no vat. Partly because of this air tickets are available for £9.99 or less and this clearly can’t be sustained. As a believer in fair competition in business it seems to me that additional tax can be supported on the basis of providing both a level playing field between competing methods of travel and the environmental benefits of discouraging carbon emissions. And, of course, there is then the opportunity for lower taxes somewhere else.