Two major airline organisations are putting increased pressure on Chancellor George Osborne to make Air Passenger Duty fairer ahead of next month’s Autumn Statement.
In a joint letter, the British Air Transport Association (BATA) and the Board of Airline Representatives in the UK (BAR UK), have outlined how they think the Chancellor could make the rest of the UK more competitive following the devolution of APD in Scotland.
The two groups argue that a 50% reduction in Band A and Band B rates of UK APD would be the best way to ensure broad parity with Scotland in the short term.
They say this would ‘support regional growth, whilst not artificially distorting competition or damaging aviation’s contribution to the national economy’.
However, they say longer term they want APD to be abolished altogether before the end of this Parliament.
BATA chief executive Nathan Stower said: "The Chancellor is right to recognise that devolution including the Scottish Government’s plans to halve APD will have implications for England, but we cannot support the devolution of APD within England.
"We are particularly concerned that a group of airports are proposing that there should be a higher rate of APD at so-called ‘congested airports’.
"We believe there is a compelling economic and political case for abolition of APD during this Parliament to improve the UK’s international competitiveness, boost trade, increase productivity, encourage inbound tourism and support the travelling public."
BAR UK chief executive Dale Keller added: "We believe passengers would find it hard to understand and difficult to accept having to pay more tax to fly than people living in other parts of the country.
"To put it simply, why should someone living in Bedford, Croydon, or Reading have to pay more tax to visit a potential client, go on holiday, or visit their family and friends, than someone living in Bradford, Chorley or Redcar?"
