VLM warns of rail monopoly as APD climbs

Rising air passenger taxes are a stepping stone to creating a rail monopoly on certain domestic routes, according to London City-based airline VLM.

The carrier’s managing director Johan Vanneste blasted the government’s hiking of APD (it doubled the duty in February 2007) and said the policy could result in carriers pulling out of some domestic air routes.

He said: “Peak time rail fares for journeys between Manchester and London are already higher than those for flights between the cities with VLM Airlines. But imagine what would happen if government moves to increase air taxation forced airlines to discontinue operating domestic services. There would be no alternative should the rail network be disrupted – and, as we know, it frequently does hit problems – and rail operators would not face any competition on pricing.”

VLM operates seven return services on weekdays between Man chester and London City.

By Dinah Hatch