Heathrow calls on government to scrap air passenger duty on domestic flights to level the playing field with Europe in plan for Brexit Britain
Heathrow has today called for the abolition of air passenger duty (APD) on domestic flights, and improved connections to the capital, in a letter to the chancellor on ways to boost Brexit Britain.
The airport said abolishing the tax would level the playing field with Europe.
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The London airport has compiled a nine point plan to include “practical, deliverable and binding” measures to connect more of the UK to global growth, and gear up for a future outside of the European Union when Britain leaves the bloc in March 2019.
Research from Frontier Economics found that UK passengers were paying an extra £225m in aviation tax on domestic flights when compared to many of their European counterparts.
The airport said that abolishing taxes on a return domestic flight from Heathrow, which are currently £26, would save UK passengers £24m annually. Heathrow said the move would also boost demand, which would in turn make new domestic connections commercially viable for airlines.
Heathrow chief executive John Holland-Kaye said:
Preparing for a post-Brexit economy means this Budget must include practical, deliverable and binding plans to support all of the UK. With an ambitious new nine point connectivity plan, Heathrow is doing its part to connect all of Britain to growth – it’s now time for the government to act.
Abolishing air passenger duty on domestic flights is a bold move that would supercharge British competitiveness, make it cheaper for British businesses to get to London and beyond and ensure every part of our country can prosper in the future.
Flybe, which launched flights between Heathrow and Edinburgh and Aberdeen in March, backed the proposal. The airline’s chief executive Christine Ourmières-Widener, said at worst, APD can account for “as much as 50 per cent of a total ticket price when based on Flybe’s lowest fare”.
“Removing APD on domestic flights would help drive UK economic development and mobility, but more importantly would bring down the cost of air travel for the everyday travelling public,” she added.
Heathrow’s nine point connectivity plan to boost UK growth:
Introduced £10 discount on domestic flights
Committed to £10m route development fund
Campaigning for the abolition of domestic air passenger duty
Supporting the ring-fencing of slots for domestic routes
Supporting public service obligation routes to Heathrow
Connecting to the largest 100 towns and cities
Supporting Western Rail link and Southern rail access
Improving connections to London
Working with HS2 to connect passengers to the North
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