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  Topic: Flybe boss blames ‘brutal’ air tax
burden for plans to slash 300 jobs
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Flybe boss blames ‘brutal’ air tax
burden for plans to slash 300 jobs

Scotsman [Edinburgh], by Dominic Jeff

Original Article

Posted By:Ribicon, 1/23/2013 11:42:37 PM

Flybe chief executive Jim French ­has announced the first jobs cull in the firm’s 30-year history in a sweeping attempt to steer the airline back to profit. Scots-born French blamed the “brutal impact” of rising taxes on air travel for the move, which will see 10 per cent of a 3,000-strong UK workforce laid off in a bid to save £35 million and get back into the black next year.(Snip) “However, faced with the brutal impact of a 160 per cent rise in air passenger duty (APD) over the past six years and the consequent 20 per cent

Comments:
Raising taxes causes increasing prices, and leads to reduced consumption of goods and cutbacks in business activity? Nuttiest thing I´ve ever heard. Better raise taxes some more to make up the shortfall.

  

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