The collapse of regional carrier Flybmi demonstrates why Government must act urgently to grasp the nettle and finally address the UK’s sky high rates of Air Passenger Duty (APD), the tax paid by passengers on every flight departing a UK airport. Tim Alderslade, Chief Executive of Airlines UK, the industry association that represents 13 UK carriers, said:
“Rates of UK APD are the highest in the world, making it harder for airlines to grow and sustain routes as they battle high fixed costs and wider economic uncertainty. Indeed, the UK was the only country in Europe to see a loss of direct connectivity last year.
APD doubly affects regional UK carriers by effectively taxing passengers twice, £13 on both the outbound and return journeys. The demise of Flybmi highlights the myriad challenges faced by airlines today trying to keep revenues ahead of costs, and should act as a wake-up call for Government which must prioritise a cut to this damaging tax – more important than ever as the UK becomes more reliant on aviation post-Brexit.”