Airport bosses call for APD rise rethink
31.10.11
The bosses of twelve UK airports have launched a scathing attack on a planned double-inflation increase in air passenger duty (APD), releasing evidence that airlines are axeing UK flights and choosing to run services from European rivals, the Scotsman reports. The airport heads, including BAA chief executive officer Colin Matthews, have sent an open letter to Chancellor George Osborne, warning that the planned increase next year will further ‘stifle’ UK aviation at a time when passenger numbers are flat-lining.
More routes will be cancelled to and from UK airports as airlines will choose tooperate cheaper European services, the airport bosses say. The UK already has the highest rate of air tax in Europe. with many countries on the Continent, including Denmark, Norway, Malta and the Netherlands, scrapping similar taxes over the damage caused to their economies.
Gordon Robertson, head of communications at Edinburgh Airport, warned the planned increase in APD, which is linked to the Retail Prices Index measure of inflation and could be more than 10%, would have a particularly detrimental effect in Scotland. He said: ‘We are all affected by APD – probably more so in Scotland than the south-east of England because we don’t have the transport links they do.’
While airlines are often reluctant to publicly give the reasons for cancelling routes, Mr Robertson said APD is often cited privately as a primary factor. According to a survey of all of the UK airports published today, 9 out of 10 said high levels of taxation have caused a reduction in passengers over the last 4 years.
In the open letter the 12 UK airport bosses say: ‘Airports are the lifeblood of every part of the UK. Yet the industry we serve is one of the highest taxed in the UK. The UK’s APD top rate is eight-and-a-half times higher than the next most expensive flight taxes levied by another country in the EU.’
‘The business case for further rises in APD does not stack up. It will deter people from flying, or displace flights to Europe, rather than to generate more tax revenue. It is inconceivable that this will not have a negative effect on the UK’s airports – and the hundreds of thousands of people who we employ. We urge the Government to re-think its plans.'
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