Scotland will cut air tax by at least 50% and could abolish it altogether if the country votes for independence next September.
Transport minister Keith Brown told the Telegraph that at current levels air passenger duty was hindering the Scottish economy.
If it is reduced, it could mean passengers in the far north of England would make a saving by flying from Scotland, putting airports south of the border at a commercial disadvantage.
A similar situation occurred in Northern Ireland as many passengers living near Belfast chose to fly from Dublin, where they paid a lower tax. As a result, the Northern Irish Assembly scrapped APD on long-haul flights.
Wales had hoped to do the same, but last month the Treasury refused to give the Welsh Assembly the power to control its own air taxes. The devolution of air passenger duty was to Wales was the only one of 31 recommendations for Wales made by the Silk Commission to have been flatly refused by the chancellor George Osborne.
And in last week’s Autumn Statement, he confirmed that air passenger duty will rise again next April.
