News: air taxes could rise again; book early for Machu Picchu

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Air taxes could rise again

Air taxes could rise again

Airlines escaped the widely-predicted rise in Air Passenger Duty in the Budget. But passengers could soon be hit with another "stealth tax" of up to £2, to add to the burgeoning list of fees that airlines attach to basic fares.

The aim of the new levy, which has been proposed by the Civil Aviation Authority (CAA), is to provide protection for travellers when an airline fails. Currently air travel is protected only if bought as part of a package or from an ATOL-bonded discount travel agency - there is no automatic protection offered to those who buy air tickets alone. Passengers stranded when Swissair and the Belgian airline Sabena went bust in 2001 received no compensation, unless they had paid with a UK credit card. So the CAA is recommending to the Government that a levy should be collected on all flights originating in the UK, creating a fund to reimburse travellers whose carrier goes bust.

In effect, this represents a subsidy to loss-making airlines by the passengers of profitable carriers. It will also penalise short-haul travellers disproportionately, adding one-tenth to a £20 one-way flight to Europe. But the CAA hopes the new scheme may lead banks - and hence airlines - to reduce credit-card surcharges, because their responsibility for refunds would end. Were this to happen, the effect for many travellers will be minimal.

The scheme will provide scant satisfaction to Matt Dixon, a reader who is more than £2,000 out of pocket on a holiday for four to to Sydney. Mr Dixon booked the trip for his family in September last year and paid a deposit of £300 to an ATOL-registered company, Sky Tours & Travel Ltd, based in south London. When the balance was due, he was asked, by phone, to pay £1,700 to another agency, which he did. STT failed in December, at which stage Mr. Dixon contacted the CAA, which administers the ATOL scheme, to get his money back. The deposit was quickly refunded. But the second firm was not an ATOL holder. Mr Dixon was obliged to buy four new tickets at a cost of £2,500.

Under current legislation, for a consumer to be guaranteed cover by the ATOL scheme, all payments must go to an ATOL-registered company.A spokesman for the CAA said: "Buyers must make sure they get all receipts and paperwork from an ATOL holder and send payment directly to that firm."

Book early for Machu Picchu

Tackling Peru's leading attraction, the Inca Trail to Machu Picchu, has just got tougher. Some British tour operators report that the authorities are insisting that intending hikers book a month in advance.

Access to the Inca Trail - a three or four-day hike along an ancient, high-altitude track - is limited to 500 trekkers per day. In previous years, short-notice trips have been feasible - either by signing up for a trek in the city of Cuzco, the starting point for almost all treks to Machu Picchu, or turning up individually at the entrance to the trail. But according to Kathy Jarvis of the specialist operator Andean Trails, entry regulations have tightened still further: "It is impossible to just arrive at the gates of the park, pay and start out on the Inca Trail". Instead, anyone wanting to trek to the world heritage site must book (and provide passport details) at least 30 days prior to entry.

Another specialist, Journey Latin America, confirmed the change; it accepts bookings between a month and a year ahead.

The peak season for hiking the Inca Trail is between May and October; the trail closes for the month of February, but the site of Machu Picchu itself remains open.