The Prime Minister of the United Kingdom has conceded that there will be “unfair tax competition” for North East airports if Scotland abolishes Air Passenger Duty. David Cameron stated that a lower APD rate in the North-East is a “positive suggestion” and that “we will do what’s necessary to make sure that England’s regional airports can succeed”.
British Airways, whose passengers alone paid £646 million in APD last year, believes APD should be abolished across the UK. Adjustments at Newcastle airport will lead to a domino effect across England with Leeds Bradford and Manchester airports demanding similar concessions to remain competitive.
Willie Walsh, chief executive of British Airways’ parent company IAG, said: “The Prime Minister words speak volumes. He has finally conceded that APD damages growth and stifles job creation. If APD is on the way out in Scotland, it needs to be scrapped UK wide”.