UK’s Air Passenger Duty: call to scrap duty to save air routes
As the air transport industry grapples with its greatest crisis ever, an airline representative group has called for the suspension of the UK's Air Passenger Duty (APD) – which is the highest duty of its type in the world.
A study carried out by a UK consulting firm and commissioned by Airlines UK has called on the British government at least to suspend Air Passenger Duty (APD) for 12 months, on the grounds that it would save 45% of the air routes out of the UK that would otherwise be lost due to the impacts of the COVID-19 pandemic. Without intervention by the government, UK airports will lose around 600 routes initially, with the situation improving as the market recovers to being about 130 routes down by Jul-2021.
Regional airlines have been under extreme pressure in recent years, most recently including the demise of Flybe, which ceased operations on 4-Mar-2020.
This is dangerous territory because there is a hibernating environmental movement waiting to pounce on any attempt to nullify what even the government considers to be an untouchable tax. But needs must.
On the other hand, some of the assumptions by Airlines UK may not be wholly accurate with regard to its claim that it is regional airports that will suffer the most if the tax remains in place, sensitive territory for the government politically, because of its policy support for those regions.
Become a CAPA Member to access Analysis Reports
Our Analysis Reports are only available to CAPA Members. CAPA Membership provides exclusive access to in-depth insights on the latest developments in the aviation and travel industry, developed by our team of dedicated analysts located in Europe, North America, Asia and Australia.
Each report offers a fresh perspective on the latest industry trends and is available online or via the CAPA mobile app, with customisable alerts to help you stay informed and identify new business opportunities.
CAPA Membership also provides access to our full suite of tools, including a tailored selection of more than 400 News Briefs every weekday and comprehensive data and analysis on thousands of companies around the world.