Hawker Beechcraft Sean McGeough comments on UK tax changes

Commenting on the
UK Budget and the planned consultation ahead of a proposed tax on flights taken
aboard business jets, Sean McGeough, Hawker Beechcraft Corporation president,
Europe, Middle East and Africa (EMEA) said,

“There is a misperception that business
aircraft operators currently pay no taxes.  In reality, business aviation
already carries a heavy tax burden through VAT and payment into the European
Emissions Trading programme for which it has to purchase all its credits, in
comparison to airlines which receive more than 90% of their ETS credits
completely free of charge.

“Across Europe, approximately 40% of business aircraft operators have only one
aircraft and 80% have less than five, so applying the air passenger tax to this
diverse sector would have a negative
impact on the entrepreneurs the government is looking to support.  Likewise, the users of these
aircraft are often entrepreneurs who recognise the significant benefits of
flying on business jets, such as making multiple
stops in a day and reaching locations not served by airlines.

“As the Chancellor has said, these
entrepreneurs and small business owners are essential to the UK’s economic recovery and we must
do all we can to support their efforts, rather than hamper them through an
unnecessary tax.”