Why a new UK tax could mean fewer flights and higher airfares

‘Transit tax’ will make passengers choose European rivals instead, as Simon Calder explains

The sun is setting on hassle-free transits at Heathrow (Getty)

A new online permit for passengers transiting through British airports could harm Heathrow and lead to a slump in customers for British Airways and Virgin Atlantic.

About one-third of passengers at London Heathrow are in transit; at present, the vast majority need only the paperwork for their final destination.

But the British government says future transit passengers will have to apply online for an Electronic Travel Authorisation (ETA) – paying £10 and getting a decision “usually” within three days.