Air India boss warns Reeves’ tax raid may deter UK enlargement

The boss helming a rapid expansion at India’s flag-carrier airline has warned that the UK could miss out on a boom in demand for flights from the sub-continent – thanks to Rachel Reeves’ Budget tax raids. 

Campbell Wilson, who took over running Air India in 2022, told the Mail that increases in air passenger duty (APD) would be ‘in the back of our minds’ as the airline assessed its route plans for the years ahead. 

It follows fierce criticism of the Chancellor from other airline bosses after she unveiled plans to increase the rate of APD, a tax charged on all passenger flights from British airports. 

At present, UK business class passengers pay from £13 for domestic flights up to £200 on the longest international journeys. 

But from April next year, this will increase to £14 on domestic flights and £202 on the longest international flights and could be increased further. 

Flight bookings in economy seats will not be affected by the hike. 

Wilson added: ‘We encourage policies that reflect the positive and social impact of aviation as opposed to those simply aimed at revenue generation.’ 

Criticism: Rachel Reeves unveiled plans to increase the rate of air passenger duty