Air India’s boss warns Reeves’ tax raid could deter British expansion

The boss overseeing the Indian airline’s rapid expansion has warned Britain could miss out on huge demand for flights from the subcontinent – thanks to Rachel Reeves’ Budget tax raids.

Campbell Wilson, who took over the reins of Air India in 2022, told the Mail that the increase in air passenger rights (APD) would be “in the back of our minds” as the airline reviewed its route plans for the coming years.

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

Currently, British business class passengers pay from £13 for domestic flights to £200 for the longest international journeys.

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

Flight bookings in economy seats are not affected by the increase.

Wilson added: ‘We encourage policies that reflect the positive and social impact of aviation, as opposed to policies that simply focus on generating revenue.’