Domestic Air Passenger Duty Limits future opportunities

Posted by Paul Cherpeau

Chief Executive

Fri 22nd, Sep

This week Heathrow launched a multi-point vision for the future and initiated a campaign to the government for the elimination of Air Passenger Duty (APD) on domestic flights.

It’s easy to become cynical about the case surrounding the UK’s recognised hub airport. It’s proposed third runway has had so many false dawns that any semblance of progress is greeted with a collective “yeah, right” rather than the anticipation one would expect.

APD is an impediment to domestic air travel. It is levied on the carriage of chargeable passengers from a UK airport on chargeable aircraft. It is calculated based upon distance from London and is split into bands – domestic connections incur a cost of £13 per person in standard class. Such costs are substantial when aggregated upwards and impair the competitiveness of aircraft operating domestic flights and particularly those at airports within close proximity to airports in devolved areas where APD has been waived.

Heathrow’s campaign is important in maintaining the focus of our region upon the support provided for Heathrow’s third runway, made on the contingent basis that regional airport landing slots are provided to the likes of Liverpool John Lennon Airport, providing a direct flight to and from the nation’s capital and times favourable to business.

The Chamber has frequently lobbied and expressed its support for a better transport deal for business, most recently concerning the freight access via road to the Port of Liverpool and rail connectivity across the North. This weeks announcement from the Department for Transport that the next stage of HS2 must contain a provision for Northern Powerhouse Rail was extremely positive.

Yet it is the multi-modal access to and from the City of Liverpool that must be pursued as the end goal. Heathrow expansion may be deemed a disproportionate benefit to the South East but, in our view, it enhances our capacity for transport connectivity to London and global destinations. The latest campaign to tackle the additional costs of APD is a step in the right direction in eliminating our barriers to transport growth and access.

See also: Chamber & LJLA welcome Heathrow Air Passenger Duty Proposal

 

Leave a comment

Give Your Business Utilities a Refresh for 2020

Mon 20th, Jan

January is a time for reflection for most people and this includes business owners, with the new year bringing with it an opportunity to take stock of performance during the past 12 months, create goals for the year ahead, and ensure...

The Inspired Energy Journey: Building a Business to Meet Diverse Needs

Mon 20th, Jan

Since its inception back in 2000, Inspired Energy has been working tirelessly to build the most complete utilities management solution available – a solution that can meet the diverse needs of businesses of all sizes and across all sectors.

What did the Millennium Bug teach us about cybersecurity?

Thu 09th, Jan

It’s hard to believe that two decades have passed - but 20 years ago the world was celebrating a momentous non-event. We remember it well!

Why Should You Check Your Business Energy Bills?

Wed 18th, Dec

Business energy bills are complex, there’s no doubt about that. With a widening range of non-commodity costs now taking up a majority share of the invoice, it can be be both confusing and time consuming to effectively recognise whether your...

Green Energy – Going Green Doesn’t Have to Cost the Earth

Wed 18th, Dec

In the third quarter of 2019, electricity generated in the UK via renewable energy sources surpassed electricity derived from fossil fuels for the first time.