Air tax will 'destroy' UK industry, top plane boss warns

The chief executive of the world's biggest airline has lashed out at the UK's tax on air travel, warning it will 'destroy' the country's airline industry.

Jeff Smisek of the newly-merged United and Continental airlines, cautioned that the air passenger duty (APD) would have a devastating effect on the UK economy from the air tax, The Telegraph reports.

He said: 'There will always be services to the UK, but there will be fewer services and fewer jobs. If you chose a tax to destroy an industry, APD is doing a pretty good job.'

One criticism levelled at APD is that the tax is based purely on the size of the plane, with no distinction made regarding fuel efficiency.

Smisek was also concerned about the possibility of 'a trade war' for US-based airlines to comply with the EU's Emissions Trading Scheme (ETS) following recently voted through legislation in the US.

He added: 'Nobody wants a trade war. We are complying with the ETS scheme. But we don't want to be in a position where one state says you have to do one thing and another says you should do another.'

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