Craig Richmond of Liverpool John Lennon Airport 300
LIVERPOOL John Lennon Airport has called on the Government to ditch its one-size fits all Airport Passenger Duty and adopt a two-tier system to foster further growth in the UK’s regional airports.
JLA chiefs submitted their response to an HM Treasury consultation on the reform of APD.
They highlighted the impact the current tax has on its business, and its fears of a “double whammy” of APD and a European version when the EU Emissions Trading Scheme commences next year.
APD in the UK is already up to 8.5 times more than the European average, and many European countries have either already abandoned their aviation taxes or indicated that they will do so, due to the negative effects on their economies.
Liverpool co-signed an industry- wide letter with other regional airports calling on the Government to revise APD, which they say has a damaging and disproportionate impact on the regions across the UK.
They say it is now very difficult for regional airports in the UK to attract airlines to start new services, which in turn hits the local economy.
The letter, signed by airport operators including Liverpool, Manchester, Newcastle, Glasgow, and Birmingham, states: “APD is now at a level which is by far the highest in the world, with taxes of up to £170 per flight making it incredibly difficult for us to attract airlines to commence new services.
“That’s not just bad news for airports and air travellers, it’s bad news for jobs, inward investment and wealth creation in the regions we serve.”
They propose that APD should be replaced with a charge on the busiest airports, such as London’s Heathrow and Gatwick.
They claim the tax has a disproportionate effect on airports outside London, and regional airports have been hit hardest by the downturn.
Without decisive action, they claim the gap will go on increasing.
Craig Richmond, chief executive of JLA owner Peel Airports, said: “Reform of the current APD is essential to help UK airports be more competitive against our European rivals, and to stimulate passenger demand during what continues to be one of the most challenging economic environments that our industry has ever experienced.”
He added: “If the Government is committed to constraining the growth of the congested London airports and prefers to see regional airports take up this capacity, then the proposal put forward by a number of regional airports, including Liverpool, to replace APD with a charge on the busiest airports needs to be seriously considered.”
Easyjet, JLA’s second biggest carrier by passenger numbers, highlighted the impact for travellers, saying a family of four on a short break will face a 33% tax hike, leaving them paying a total of £64 for each break in Europe – and £128 if they fly on holiday to Northern Ireland or Scotland.
Chief executive Carolyn McCall said: “Family holidays in Europe are being clobbered by the Government. This is unfair on hard-working fam
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