APD blamed for big passenger drops at regional airports
25.06.11
Passengers using regional airports have fallen by up to 70% in the last four years according to Civil Aviation Authority statistics, the Telegraph reports. It says that the figures support claims made by airport operators that Air Passenger Duty (APD) is having a ‘damaging and disproportionate impact’ on regional hubs (and ignores the affect or the recession).
During the last four years APD has risen by 140% on short-haul flights, from £5 to £12, and by up to 325% on longer journeys. The Government has been told that further increases in APD, being considered by the Treasury, will result in the loss of more regional routes and airport closures.
Among the worst affected airports was Bournemouth. During the first 3 months of this year it had around 60,000 passengers, compared with more than 200,000 during the same period in 2007. Over the same period, passenger numbers fell by 57% at Prestwick Airport, by 58% at Robin Hood Airport and by 38% at Exeter Airport. There have also been reductions in the number of passengers using larger regional airports: 28% at Newcastle and 23% at Glasgow.
Last week the Government concluded its consultation on the future of APD. One option being considered is an increase in the rate on short-haul flights in order to facilitate a cut in the rate on long-haul ones. A decision is expected in the autumn, with changes to come into effect next year.
Graeme Mason, planning and corporate affairs director at Newcastle Airport, told the newspaper that regional airports could not withstand current levels of APD and would not cope with higher rates, which would lead to ‘the loss of many more regional air services and the closure of further regional airports.’
Jonathan Bailey, external affairs director at Manchester Airports Group, said recently that he saw ‘no future’ for the UK's smaller airports, blaming high tax and regulatory and security costs, which he said had a greater impact in the regions.
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