THE aviation and travel industry in general is up in arms over a 50 per cent hike in flight taxes announced by the Chancellor Gordon Brown as part of his pre-Budget changes in early December.

The tax hike means that from February 1, 2007, those travelling on short haul economy flights will pay £10 per flight as opposed to £5.

Those travelling further afield on long-haul flights will now have to fork as much as £40. Taxes will increase even more for those travelling in higher classes, it was also revealed.

The Chancellor said the increase was his way of addressing the negative impact flying has on the environment.

In a climate change review, it was claimed that the aviation industry accounts for 1.6 per cent of greenhouse gas emissions and this will rise by 2.5 per cent by 2050 if the problem is left unchecked.

The Chancellor said: "The challenges of the next 10 years, economically are very big and I want to show how we are addressing these changes."

And although many airlines and passengers alike are angry by the price hike, the Aviation Environment Federation said: "it is a useful start".

Many airlines cannot understand how paying more taxes will reduce emissions and help the environment. Andy Harrison, easyJet Chief Executive, said: "We say that it is the wrong tax for the economy and the wrong tax for the environment. Not all airlines are the same.

"EasyJet flies brand new aircraft with high passenger loads which mean that we emit 30 per cent fewer emissions per passenger kilometre than a traditional airline.

"It is simply daft that our passengers should pay the same level of APD as the less efficient airlines.

Flybe is also angry. "Flybe is at the forefront of the efforts by the airlines to reduce the environmental impact of air travel and promote sustainable growth in the aviation industry. We do not understand how the Chancellor thinks that simply adding an extra £5 tax will reduce carbon emissions from aircraft.

"It is about time the Chancellor stopped playing political football with the industry. "The answer is not new taxes, but cleaner fuel, green aircraft, more efficient air traffic control management, and creating a market for carbon with the introduction of the emissions trading," said Mike Rutter, Flybe's Chief Commercial Officer.

At time of going to Press, travel agents and airlines were still unclear over how to charge these extra taxes on to those who have already booked flights departing after the implementation date.

EasyJet, an airline often booked by passengers well in advance is concerned by the speedy implementation time. It has written to HM Treasury urging Gordon Brown to clarify the tax rules for those passengers who have already purchased flights for travel after 1st February 2007.

According to the Chancellor's statement, the new APD bands will apply to all flights from that date. Yet millions of air travellers had already booked their flights at the previous levels of APD. The arrangement for these passengers is unclear and any attempts to claw back tax could even be illegal under Section 30 of the Finance Act 1994, says easyJet.

ABTA believes some travel agencies may foot the bill for packages pre-booked before the tax announcement while those flight only customers may be asked to pay up front.

Some airlines have yet to make a decision as to how they will collect the extra tax with easyJet saying they faced a £4.5 million bill and are relying on goodwill and even considering asking customers who pre-booked before the Chancellors announcement for an "extra fiver".

British Airways has made a firm decision that it will not pass its £11 million bill on to customers while Virgin Atlantic has still to make a decision.