Five years ago, when Britain imposed a small Air Passenger Duty (APD) on flights from London, they called it a green tax that would raise money for various environmental projects. Two weeks ago, when they increased that tax to really serious levels, they explained it was a revenue-raising measure designed to pay off the government’s recent bail-out of British banks. (Just like the U.S., the U.K. government came to the rescue of companies like Citigroup and Bank of America; unlike us, they are actually raising taxes to cover that expense).

The reason for the new bailing out the banks explanation is based on the really substantial amount of the new tax, designed to raise many billions of British pounds. Starting as of several days ago (November 1), passengers on medium-haul flights from London (a trans-Atlantic flight to the U.S. is considered medium haul) will now be charged £45. (The charge is only on a flight originating from London, and not on flights to London.) Passengers flying even greater distances (like to Asia) will pay £55.

In a further chilling announcement, the British government has advised that the APD will go up by a further substantial amount one year from now, on November 1, 2010.

I became aware of this new levy when a friend brought to my attention the mysterious new charge (U.K. Air Passenger Duty) appearing on an invoice he had just received from Continental Airlines for a round-trip flight between Newark and London this coming winter. Added to a $222 fuel surcharge also appearing on that bill, the total economy class fare for a round-trip flight in that depth of the off-season amounted to $647.10. This means that in the coming Spring, when airfares always increase, the cost of a round-trip fare to London, from the U.S. east coast, will undoubtedly go up to at least $800 or $900 -- I stress the words at least. And the same fares will probably reach $1,000 in summer -- and far more than that (say, $1,200) from the U.S. west coast.

Britain is currently the only European country to levy such a charge. Holland used to do the same, but then rescinded the tax last year when it discovered that tourism to Holland was hurting badly because of the added expense of flying from there by air.

Now why I am lingering on this lugubrious news? It is simply to keep all of us well-informed. The combined impact of a weak dollar, high-priced oil, and a substantial duty on flights from Britain, may influence your own choice of European itineraries. You may, at the very least, decide to minimize your time in England and arrange to fly home from another European country.