Scottish airports are calling for immediate action on APD claiming the aviation tax could cost them more than two million passengers.
The managing directors of Aberdeen, Edinburgh and Glasgow airports have come together to urge Chancellor George Osborne to conduct a full and thorough review of APD.
The demands follow the publication of a report warning it could cost Scotland more than two million passengers per year by 2016.
The report, commissioned by the three airports, was unveiled at the inaugural meeting of the Scottish Parliament's Cross Party Group on Aviation which was held yesterday.
In addition to costing Scotland over two million passengers per annum, the report warns that by 2016 APD will cost the Scottish economy up to £210 million in lost tourism spend per annum.
The UK Government has significantly increased rates and restructured APD since 2007.
Rates for short haul travel have increased by around 160% with long haul rates increasing by between 225% and 360%.
The report also confirms that the UK is out of step with its European counterparts when it comes to aviation tax, with many Governments reducing (Spain, Ireland) or abolishing (Netherlands) APD in order to support their indigenous airlines.
Given its location on the periphery of Europe, Scotland and its economy is particularly reliant on aviation and any loss of connectivity will have a significant impact on the country's competitiveness it claims.
Amanda McMillan, managing director of Glasgow Airport, said: "Due to the size of the market in Scotland, we will always find it difficult to attain and sustain new routes and this situation is compounded even further by APD which simply serves to artificially depress demand and dissuade airlines from basing aircraft here."
By Diane Evans
Thursday, November 1, 2012