Call for higher air tax at London airports to pay for regional cut
Flybe chief Saad Hammad has written to the government to call for a 50% cut in air passenger duty at regional airports.
In a letter to Chancellor George Osborne, he said this could be funded by an increase in air tax at busier London airports like Heathrow and Gatwick.
He said the issue of APD had become ‘critical’ following the vote to leave the EU.
"We are beginning to see turmoil in our financial markets and our economy under threat of serious and lasting damage," he wrote.
He added: "HM Treasury has yet to comment on the outcome of the discussion paper regarding the options for supporting English regional airports against the impacts of (Scottish) APD devolution.
"Now is surely the time to address this issue, particularly with the Scottish Government pressing ahead with plans for a 50% reduction in Air Passenger Duty.
"HM Treasury has previously argued that it cannot abolish APD given the scale of its contribution to the public finances. In the absence of outright abolition, Flybe firmly believes that APD could be amended in a fiscally neutral manner to deliver an economic benefit to the UK regions, a stated aim of the Government.
"This could be achieved by lowering the levy at regional airports by 50% in line with what is being planned in Scotland, funding it through an increase at the large, slot-constrained airports in London such as Heathrow and Gatwick."
Hammad said reducing APD at regional airports would help address the ‘disproportionate’ impact on the UK regions.
"The corresponding increase on passengers using Heathrow and Gatwick would be akin to a congestion charge, a concept already well established in our economy as best shown by the London road congestion charge," he said.
He said such a move would provide a more level playing field between regional and international travellers and assist the development of regional airports and economies, ‘particularly in light of the uncertainty after the referendum vote to leave the EU’.
"It would also remove potential market distortions and risks of unfairness on passengers in England from APD devolution and reduction in Scotland and Wales," he added.
" Finally, it would provide an economic incentive for the immediate use of spare runway capacity available today at regional airports neighbouring London such as Birmingham Airport, given new runway capacity at either Heathrow or Gatwick could take more than a decade to come on stream if it is ever approved."
Linsey McNeill
Editor Linsey McNeill has been writing about travel for more than three decades. Bylines include The Times, Telegraph, Observer, Guardian and Which? plus the South China Morning Post. She also shares insider tips on thetraveljournalist.co.uk
Vegas’s Billion-Dollar Secrets – What They Don’t Want Tourists to Know
Visit Florida’s New CEO Bryan Griffin Shares His Vision for State Tourism with Graham
Chicago’s Tourism Renaissance: Graham Interviews Kristin Reynolds of Choose Chicago
Graham Talks with Cassandra McCauley of MMGY NextFactor About the Latest Industry Research
Destination International’s Andreas Weissenborn: Research, Advocacy, and Destination Impact
Graham and Don Welsh Discuss the Success of Destinations International’s Annual Conference
Graham and CEO Andre Kiwitz on Ventura Travel’s UK Move and Recruitment for the Role
Brett Laiken and Graham Discuss Florida’s Tourism Momentum and Global Appeal
Graham and Elliot Ferguson on Positioning DC as a Cultural and Inclusive Global Destination
Graham Talks to Fraser Last About His England-to-Ireland Trek for Mental Health Awareness
Kathy Nelson Tells Graham About the Honour of Hosting the World Cup and Kansas City’s Future
Graham McKenzie on Sir Richie Richardson’s Dual Passion for Golf and His Homeland, Antigua
ADS PRO 
Phocuswright reveals the world's largest travel markets in volume in 2025
Higher departure tax and visa cost, e-arrival card: Japan unleashes the fiscal weapon against tourists
Cyclone in Sri Lanka had limited effect on tourism in contrary to media reports
Singapore to forbid entry to undesirable travelers with new no-boarding directive
Euromonitor International unveils world’s top 100 city destinations for 2025