UK airports list lost routes due to APD levels

More than half of the UK’s airports expect passenger numbers to fall in 2013-14 if the Government increases Air Passenger Duty (APD).

A new survey of 26 UK airports, conducted by the Airports Operators Association, has shown how routes have been affected by current APD levels and widespread concern about  the anticipated increase.

On Wednesday the Chancellor is expected to confirm a 2.5% increase in APD in his Autumn Statement which will take effect from April 2013, see other story.

It follows a double inflation rise for passengers in April this year.

One in four airports say that as a direct consequence of the planned rise passenger numbers would fall by more than 5%.

A further one in four airlines said passenger numbers would fall by between 2-5%.

73% of airports say they are "very worried" by the Government’s plans to increase APD. 

And 83% of airports say that "current levels of APD are having an impact on whether airlines choose to fly from our airport".

The survey also found widespread evidence of lost routes and the commercial impact the tax is already having. These include:

•    Gatwick Airport says that (in March 2012) Air Asia X ceased their route from Gatwick to Kuala Lumpar specifically because of the rising levels of APD.

•    Bristol Airport attributes rising APD to reduced domestic services from the airport, from low cost carriers, easyJet and Ryanair, and says APD was one of the reasons the Continental Airlines service to Newark was stopped in November 2010.

•    Glasgow Prestwick Airport says the routes which have been lost or severely affected by rising APD include: London Stansted Belfast, Bournemouth, Dublin, Shannon and two Scandinavian routes (Gothenburg, Oslo and Stockholm).

•    Southampton Airport says that domestic routes (on which APD is levied twice – for outbound and inbound journeys) have been adversely impacted by APD – including routes to Leeds-Bradford Airport, Glasgow Airport and Edinburgh Airport. It also says that APD has contributed to a loss of services to Brussels.

•    City of Derry Airport says that Ryanair have made it clear they will not add any new UK routes or capacity on existing routes due to APD rises.

•    Cambridge Airport says that in attracting airlines to start-up new routes to Europe, the high taxes of operating to the UK are leading carriers to explore European markets for new routes rather than the UK.

Nick Barton, managing director, London Stansted Airport, said: "The UK is now only one of six European countries still imposing this tax and we charge twice the amount of the next most expensive country, Germany.

"Instead of increasing APD, Government needs to understand the damage this is doing to UK Plc, freeze the rate immediately and conduct an economic impact assessment."

There is growing pressure for the Treasury to commission an impact-assessment of APD due to the growing Fair Tax on Flying campaign.
200,000 people wrote to MPs this summer calling for an economic impact-assessment of APD. 90,000 overseas travellers have contacted the Treasury directly, with the same message.

100 MPs – including 97 who signed an Early Day Motion – are backing calls for a review.

In a Commons debate on APD on November 1, 35 MPs expressed their concerns about current levels of the tax, and the motion calling for a comprehensive review of APD passed unanimously.