Smaller airports held back by aviation tax

• Report: Smaller airports
• Report: Smaller airports (PDF 524KB)
• Inquiry: Smaller airports
• Transport Committee

Launching the report, Committee Chair Louise Ellman MP said:

"Smaller airports drive economic growth. But the smaller airports sector—which is vital to people and businesses in the regions—is limited by Air Passenger Duty. Transport Ministers must stand up for smaller airports and make the case to the Treasury that APD squeezes jobs, growth and connectivity."

Double-charging of APD 

The report warns that the double-charging of APD on domestic return flights incentivises passengers to fly from hub airports in other European countries. And it points out that the proposed devolution of APD to Scotland could place airports in northern England at a serious competitive disadvantage.

Louise Ellman commented:

"We heard about how airports in Northern Ireland have been affected by Air Passenger Duty, where passengers choose to fly from Dublin because aviation taxes are lower. Northern England could experience a similar competitive disadvantage if APD is devolved to Scotland."

Expansion in the south-east 

The report also examines how smaller airports might benefit from airport expansion in the south-east. Committee Chair Louise Ellman MP said:

"The whole country should share the economic benefits of expanded airport capacity. But that will only happen if new capacity includes new domestic flights to airports outside London. The DfT needs to take a proactive approach and ensure that the regions are connected."

The report explores how the Government can support regional connectivity and calls on the DfT to assess whether some new slots could be ring-fenced to support regional connectivity.

Further information

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