Revenue Generation: APD was initially introduced in 1994 primarily to raise funds for the government. Unlike some taxes, it wasn’t specifically designed for environmental reasons. The revenue collected from APD contributes to the general treasury and isn’t earmarked for specific aviation infrastructure or environmental projects.

Environmental Considerations: Although APD doesn’t directly account for aircraft efficiency, it has been seen by some as having potential environmental benefits. By adding a cost to air travel, it aims to discourage people from taking certain flights, thereby reducing overall air traffic volumes. However, the extent to which APD influences behavior remains a matter of debate.

Tax Structure: The amount of APD varies based on flight distance and class:

• Short-haul flights (to countries whose capital city is less than 2,000 miles from London):
  • Reduced rate (for seats with less than 40 inches of space): £13 (shorter flights) or £78 (longer flights).
  • Standard rate (for other classes with seat space more than 40 inches): £26 (shorter flights) or £172 (longer flights).
  • Higher rate (for planes with fewer than 19 seats): £78 (shorter flights) or £515 (longer flights).
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• Long-haul flights (to countries whose capital city is more than 2,000 miles from London):

Effect on Demand: Research commissioned by Airlines UK in 2015 suggested that APD suppressed demand for flights by approximately. However, the impact on passenger behavior remains complex and varies across different scenarios. While APD serves as a revenue source, its potential environmental benefits are subject to ongoing discussion. Whether it significantly deters people from flying remains a nuanced question