Flybe is calling for a shake-up of Air Passenger Duty to make it fairer for domestic travellers.
It believes that, at the bare minimum, the system must be changed so that domestic travellers only pay once, not twice.
It has outlined its argument and call for action in an open letter to Chancellor George Osborne, following a submission recently made to HM Treasury.
Flybe chief executive Saad Hammad believes the Treasury has overlooked the way in APD disadvantages regional travellers on a per mile basis in comparison to those travelling short-haul to Europe and in particular against those travelling long-haul.
In addition, it says domestic travellers are penalised because they pay the tax twice, while passengers flying internationally only pay it once.
Based on it calculations, a passenger flying from Manchester to the Isle of Man ends up paying 38 times more, per mile, than a passenger flying from Manchester to Auckland.
Flybe has stressed to the Chancellor that, at a minimum, a return domestic flight should only have APD levied on it once.
"There is absolutely no logic in such an unfair discriminatory tax regime," said Hammad.
"If the Government is serious about fostering economic development in UK regions, it should continue to support aviation rather than just spending billions subsidising rail projects such as HS2 and HS3 which will not be delivered for decades."
