NORTH-EAST airport bosses have joined calls to scrap tax plans that could make it cheaper to fly from Scotland.
Dave Laws, Newcastle Airport chief executive, has signed an open letter to the leaders of the three main political parties warning that changes to Air Passenger Duty (APD) threatens jobs and investment in English regions.
APD is levied on air passengers leaving UK airports. For short haul flights each passenger is charged £13, and £69 for longer flights. Scotland is pressing for control over APD to be part of the devolution settlement promised by David Cameron.
Devolving powers to abolish or reduce air taxes would give airports in Scotland, Wales and Northern Ireland an unfair advantage, say bosses at Newcastle, Birmingham and Bristol airports, who fear it would reduce their passenger numbers, and impact on the ability of English airports to attract new airlines and maintain existing routes.
The letter said: “Continued calls for devolution of APD to both Scotland and Wales risk distorting the UK-wide level playing field on which we currently operate, jeopardising up to £1.2bn in GVA and over 2,500 jobs in the North-East and South-West of England alone over the next decade according to economic impact assessments carried out by air transport consultants, York Aviation.
“English airports make valuable contributions to the regions we serve, providing vital connectivity for local economies, supporting jobs, driving inward investment and promoting inbound tourism. "We operate in an international market, competing for aircraft to serve routes with other airports across Europe puts us at a significant disadvantage versus non-UK airports."
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