Airlines & airports call for action on APD in the Budget
February 27th, 2020
Calling on the Chancellor to take decisive action on APD in the upcoming Budget, Airlines UK Chief Executive Tim Alderslade and Airport Operators Association Chief Executive Karen Dee said:
“The UK is only European country that saw direct connectivity decline two years’ in a row. Because the UK levies at least double the tax on flights that our European trading rivals do, UK businesses are missing out on vital connectivity to build the trading relationships our departure from the EU is making possible.
“UK regions are missing out especially, including in their domestic connectivity. The Chancellor should use the ongoing APD review to put an end to our sky-high aviation taxes so UK aviation can genuinely compete with Germany, France and other EU countries for international connectivity.
“Airlines will respond with more routes and greater investment in the regions of the UK, enabling airports to help level up their regions.”
Notes to Editors:
1. ACI EUROPE’s Airport Industry Connectivity Report 2018 and 2019 showed UK connectivity declining. The reports are available here: https://www.aci-europe.org/test-menu-from-qa.html.
2. APD is charged per person on departures from UK airports. There are different rates for economy class (the reduced rate), business/first class (the standard rate), short haul (Band A) and long haul (Band B). The higher rate of APD is levied on business jets. The rates from April 1st, 2020 are set to be:
Destination bands Reduced rate Standard rate Higher rate
Band A £13 £26 £78
Band B £80 £176 £528
3. Only six other countries in the EU level a similar departure tax, with Germany levying the next highest such tax at around half the UK rate. France levies a number of aviation taxes, which total at around a quarter the UK rate. The Republic of Ireland and the Netherlands, which both have major airports that act as hubs for UK traffic, do not levy any aviation taxes.
4. The Airport Operators Association (AOA) is the trade association that represents UK airports. Its mission is to see UK airports grow sustainably. The AOA represents the views of UK airports to Government, Parliament and regulators to secure policy outcomes that help deliver its mission. It represents more than 50 UK airports in the UK. For more information, please visit www.aoa.org.uk.