UK raises flyers fees

[Kip Powick]

Forget London. If you're looking for a deal on a flight to Europe, Amsterdam is now the place to go.

That's the bottom line in the wake of sharply higher British airline taxes that took effect Thursday.

The controversial change, announced in December by United Kingdom Chancellor Gordon Brown, doubles the country's Air Passenger Duty on long-haul flights to 40 British pounds for economy class, or about $78 (the premium-class tax also doubles, to 80 pounds, or about $157). The increase boosts the already high total cost of taxes and fees in economy class between the USA and the U.K. to nearly $300, more than double the amount levied on flights to rival low-cost hub Amsterdam.

"It (now) makes a lot of sense to use airports outside the U.K. for getting to Europe," says Tom Betts, editor of flycheapo.com, a British-based website that focuses on low-cost flights in Europe. "There is a real danger (to British airlines) of Americans avoiding the United Kingdom."

Indeed, with the tax increase, the total price of a round-trip ticket from New York to London, long the low-cost hub for Europe-bound Americans, can now be $20 higher than a round-trip to Amsterdam — a major flip-flop in the old rule of thumb that London always was a tad cheaper. Non-stop flights between New York and London for travel in March were selling this week on Orbitz.com for $517, round trip (a fare of $238 plus $279 in taxes and fees). Between New York and Amsterdam for the same days, they were $497 (a fare of $396 plus $101 in taxes and fees).

The United Kingdom also boosted taxes Thursday on domestic and intra-European flights by 5 pounds, or about $10. Betts notes that the increase makes London less appealing as a base for Americans who plan to visit multiple European cities using discount air carriers such as Ryanair and easyJet.

In announcing the increases on Dec. 6, Brown said the money would go toward improvements in public transportation and environmental programs.

The tax has been controversial in England and caused modest confusion, in part because it's retroactive to passengers who booked before it was announced. The result: Passengers who had paid for their tickets in full before Dec. 6 are now getting last-minute bills for the additional money, and airlines say they won't let passengers board unless they pay up.

Holding a ticket for an upcoming flight to, from or through the U.K.? Betts says you should check immediately with your airline to see how much extra you owe — if anything. In general, if you booked a flight:

•Before Dec. 6. You owe the additional tax and must pay the airline before you depart. Some airlines, such as Virgin Atlantic, are letting passengers pay at the airport when they arrive. Others, such as Ryanair, require passengers to pay in advance.

One exception is British Airways, which is absorbing the extra tax for those who paid for their tickets before Dec. 6 — 900,000 in all — at a cost of more than $20 million.

•After Dec. 6. You already paid the additional tax. As soon as the tax was announced, airlines added it into their reservation computers.

The tax does not apply to travelers who are transiting through a British airport only on their way somewhere else.