LONDON, Dec 3 (Reuters) - British finance minister GeorgeOsborne said he would scrap a tax charged on children flying outof the country, making it cheaper for families to travel.
Presenting his half-yearly budget statement to parliament onWednesday, Osborne said that from May 1 next year, air passengerduty (APD) would not be charged on children under 12 and from2016, it would be abolished for all under-16s.
Britain's APD is a tax of between 13 pounds ($20.5) and 194pounds depending on flight distance and class of travel chargedon each passenger leaving the country, and which the airlineindustry says has a negative impact on the economy.
"I want to reduce the cost of those tickets for families,"Osborne said.
Shares in London-listed airlines easyJet, BritishAirways-owner IAG and Flybe extended earliergains to trade up 2.1 percent, 1.6 percent and 5.2 percentrespectively.
The announcement comes days after Scotland was given thego-ahead to slash its APD if it chooses to under a new tax dealwith Britain, potentially giving Scottish airports an advantageover rivals south of the border in England.
Flybe Chief Executive Saad Hammad welcomed the change butsaid more needed to be done.
"This is just tinkering at the edges and represents a missedopportunity by The Chancellor to show that he is serious aboutthe economic regeneration of the UK regions," he said in astatement. (Reporting by Sarah Young; editing by Kate Holton)