EASYJET COMPANY TAX IMPLICATIONS

EasyJet Company Tax Implications



EasyJet Company Tax Implications

Introduction

EasyJet Airline Company Limited (EasyJet) is a British airline headquartered at London Luton Airport. It carries more passengers than any other United Kingdom-based airline, operating domestic and international scheduled services on 500 routes between 118 European, North African, and West Asian airports. EasyJet has glimpsed fast increase since its establishment in 1995, having developed through a blend of acquisitions and groundwork openings fuelled by consumers demand for low-cost air travel. The airline, along with franchise airline EasyJet Switzerland, now function over 180 aircraft, mostly Airbus A319. It has 20 bases over Europe, the most significant one being London-Gatwick. In 2009, EasyJet conveyed 45.2 million passengers and is the second-largest low-cost carrier in Europe, behind Ryanair. EasyJet was boasted in Airline sequence announced on ITV which pursued the airline's procedures at London Luton and subsequent at other bases. EasyJet's founder, Sir Stelios Haji-Ioannou, was boasted very powerfully in the series. (Ottink, 2004, pp. 45-54)

Discussion

EasyJet, the UK's largest airline, recently took out advertisements in the national newspapers as part of its long-running campaign to make air tax greener and to cut out the subsidies. Last year, the Government announced that it will scrap the current structure of Air Passenger Duty (APD) and replace it with a flight tax, i.e. a tax on planes. A tax that penalizes families but excludes private jets and cargo (Dunn, 2007, pp. 24-31). EasyJet calls for a pollution tax based on aircraft type and flight duration. The pollution tax asks the low-cost airline would be based on aircraft type and duration of the flight. EasyJet has launched a green campaign involving the substitution of 'Air Passenger Duty' (Air Passenger Duty) by a tax based on aircraft type and flight distance. The airline believes the move will force other airlines to operate more cleanly, efficiently and therefore, environmentally friendly.

The APD charges imposed approximately 2.4 billion pounds annually, but without a significant reduction in emissions from flights. The report stresses that APD far this tax on carried passengers, but not in private planes, cargo or passengers in transit. Moreover, the APD tax burden was the same for all passengers, regardless of the distance of the flight or cleaning of the aircraft. All this may change following the introduction of tax on pollution given that those who travel less pollute the environment less and therefore, should pay less.

The new tax shows a way to address the issue of protection wiser by the aviation industry to encourage consumers to choose to fly most ecologically ever be afforded this opportunity. Thus, little by little planes that pollute and are old will fly the skies of the world. Since 2009, the subject of taxation may change each year by the taxpayer. Object of taxation may be changed from the beginning of the tax period if the taxpayer notifies the tax authority by 20 December of the year preceding the year in which the taxpayer wants to change the subject of ...