Airlines call on Chancellor to seize the opportunity presented by devolution of APD to Scotland

The two organisations representing the vast majority of airlines operating to and from the UK have joined forces and written to the Chancellor in advance of next month’s Autumn Statement. They are highlighting the opportunity that the devolution of Air Passenger Duty (APD) to Scotland presents to make the rest of the UK competitive.

The joint letter to the Chancellor from the British Air Transport Association (BATA) and the Board of Airline Representatives in the UK (BAR UK) follows the latest official statistics published last week showing that APD has already cost passengers using UK airports over £2.3 billion in the first nine months of 2015.

BATA and BAR UK both raised concerns over the summer about proposals to deal with the impact of devolution of APD to Scotland. Both organisations highlighted significant flaws with the three potential policy options set out in the Treasury Discussion Paper on the issue.

The two trade associations point out that a 50% reduction in Band A and Band B rates of UK APD would be the best way to ensure broad parity with Scotland in the short term. This would support regional growth, whilst not artificially distorting competition or damaging aviation’s contribution to the national economy.  Their objective remains abolition of APD before the end of this Parliament, to deliver the greatest economic benefits and transform the UK’s competitiveness.

Nathan Stower, Chief Executive of BATA, said:

“The Chancellor is right to recognise that devolution including the Scottish Government’s plans to halve APD will have implications for England, but we cannot support the devolution of APD within England. We are particularly concerned that a group of airports are proposing that there should be a higher rate of APD at so-called ‘congested airports’.

 “We believe there is a compelling economic and political case for abolition of APD during this Parliament to improve the UK’s international competitiveness, boost trade, increase productivity, encourage inbound tourism and support the travelling public.”

Commenting on the recent Treasury Discussion Paper about responding to the impact of devolution of APD, Dale Keller, Chief Executive of BAR UK said:

“We believe passengers would find it hard to understand and difficult to accept having to pay more tax to fly than people living in other parts of the country. To put it simply, why should someone living in Bedford, Croydon, or Reading have to pay more tax to visit a potential client, go on holiday, or visit their family and friends, than someone living in Bradford, Chorley or Redcar? 

“Devolution presents the Chancellor with an opportunity to take the lead in addressing the fundamental lack of competitiveness of UK APD.”

ENDS

Friday 30 October

Changes to UK visa regime for Chinese tourists – BATA statement

Commenting on the Prime Minister’s announcement of changes to visitor visas for Chinese tourists, Nathan Stower, Chief Executive of the British Air Transport Association, said:

“Making it easier and more convenient for high-spending Chinese visitors to come to the UK could be the dictionary definition of a no-brainer. Today’s announcement is another important step in the right direction and the Prime Minister deserves much credit for recognising the importance of this issue.

“We will continue to encourage the Government to go further to increase the competitiveness of the UK’s visa system in China and other important markets like India, including early implementation of their plans to reduce the cost of a 10 year multiple entry visit visa from to £822 to £85. UK airlines will continue to play their part in attracting these high value tourists to our shores.”

ENDS

21 October 2015

easyJet Chief Executive gives inaugural BATA annual lecture

The inaugural BATA annual lecture took place yesterday afternoon, with Carolyn McCall, Chief Executive of easyJet, delivering a speech to an audience of senior industry figures and stakeholders at the London Transport Museum in Covent Garden.

Nathan Stower, Chief Executive of BATA, said:

“Carolyn delivered a fascinating and entertaining lecture about easyJet and the major issues facing our industry. Her support for cross-industry collaboration to provide a strong voice and effective action on the issues that unite us could not have been clearer. BATA will work with all of our members to provide that collective voice – from campaigning on Air Passenger Duty to ensure passengers across England don’t lose out after devolution to Scotland, to finding practical steps to tackle the problem of disruptive passengers.

“We were delighted that SITA and Airbus were able to support the lecture and that so many key aviation figures were able to attend. Following the success of yesterday’s event, work will soon start on preparations for next year’s lecture. This is all part of BATA’s greater focus on external activity, performing a vital role as a positive, confident and vocal organisation representing the UK airline industry.”

ENDS

Carolyn’s speech is available here

15 October 2015

Minsters urged to put APD abolition ‘back on the table’ to respond to devolution to Scotland

The British Air Transport Association (BATA) has today called on the Government to abolish Air Passenger Duty during this Parliament in its response to a Treasury consultation on APD devolution.

The Treasury paper, published on the day of the Summer Budget in July, set out three options for supporting English regional airports from the impacts of Air Passenger Duty devolution to Scotland and potentially Wales.

The three options have been rejected by UK airlines due to their significant flaws, questionable legality and a failure to tackle the fundamental problem of UK APD being the highest tax on flying in Europe and one of the highest in the world.

Commenting on BATA’s submission, Chief Executive, Nathan Stower, said:

“The Scottish Government’s commitment to reduce the burden of APD by 50% from 2018 is great news, but it creates a new inequality for passengers living right across the UK and a competitive challenge for England.

“The Treasury is right to recognise that devolution will require a policy response in England, but the options in their paper are simply inadequate. Passengers living in London and the South East should not have to pay more tax to fly for business or leisure than passengers living in Scotland, Wales or any other region in England for that matter.

“Luckily there is still time to put other options back on the table for consideration, including abolition and significant reductions of UK APD, that would be fairer to passengers across the UK and improve international competitiveness.”

 ENDS

8 September 2015

BATA welcomes Scottish Government’s commitment on Air Passenger Duty

 Responding to the publication of the Scottish Government’s Programme for Government 2015-16, British Air Transport Association Chief Executive, Nathan Stower, said:

“The Scottish Government’s commitment to reduce the burden of APD by 50% from 2018, with a view to abolishing completely in due course, is good news for Scottish businesses, families and visitors. Halving the UK’s current rates would bring Scotland broadly in line with Germany’s aviation tax.”

ENDS

1 September 2015

Number of people flying to visit friends and relatives at all-time high

New analysis by the British Air Transport Association of official travel statistics has revealed that more people are taking to the skies to visit friends and relatives (known as ‘VFR’ travel) than ever before.

Last year, there were 19.03 million VFR visits to and from the UK by air –  an increase of almost 230,000 from the pre-recession high in 2008, and a 23% increase since 2010.

• 58% of the total visits last year (11.06 million) were made by UK residents to friends and family living abroad. Two thirds of those visits (7.26 million) were made to European destinations and one third (3.81 million) were to the rest of the world.

• 42% of the total (7.97 million) were made by overseas residents to the UK in 2014. 68% of those visits (5.44 million) were made by people living in Europe, while 32% (2.53 million) were from the rest of the world.

VFR visits both to and from the UK have increased since 2010, but visits by UK residents overseas have increased at a significantly faster rate – 26% (from 8.8 million to 11.06 million) compared with 19% (from 6.72 million to 7.97 million) for overseas residents to the UK.

Flying is easily the most popular mode of transport for people visiting friends and relatives. 83% of all such visits are made by air. Just 10% are made by sea and 7% by rail through the Channel Tunnel. Even for journeys to and from Europe, flying accounts for 77% of visits, compared with 14% by sea and 9% by rail.

On top of the obvious social benefits of families and friends who live far apart being able to spend time together, there are also economic benefits from VFR travel. £4.07 billion was spent in the UK by overseas residents who were visiting their friends and relatives last year.

VFR travel is not concentrated at any one airport, reflecting the fact that people all across the country fly domestic, short-haul and long-haul to get to their loved ones. According to the latest CAA passenger survey data, Luton airport had the highest proportion of VFR journeys at 48% in 2013.

Nathan Stower, Chief Executive of the British Air Transport Association said:

“While recent debate has focused on the economic benefits and environmental challenges of aviation growth, the social benefits of aviation should not be ignored. Air travel allows people who live in different parts of the country and different corners of the world to meet up with their family and friends. Communication technology may have improved and expanded in use significantly in recent years, but it’s clear that nothing can replace being with your nearest and dearest.”

ENDS

21 August 2015

easyJet CEO Carolyn McCall to deliver the inaugural British Air Transport Association annual lecture

The British Air Transport Association (BATA) is pleased to announce a new annual lecture, which in its inaugural year will be delivered by Carolyn McCall OBE, Chief Executive Officer of easyJet. The event in October will offer BATA members and senior industry stakeholders the opportunity to hear from and question one of the aviation world’s leading CEOs.

Sponsored by Airbus and SITA, BATA expects its annual lecture to become a permanent fixture and highlight of the aviation calendar, sitting alongside an expanded programme of events run by the UK trade body.

CEO of easyJet since 2010, Carolyn McCall has led the company through a series of important milestones, including the airline carrying over 60 million passengers per annum and its listing on the FTSE 100. Having been responsible for introducing a number of airline innovations and generating record annual profits, Carolyn is the perfect person to help launch this prestigious new aviation lecture.

BATA Chief Executive, Nathan Stower, said:

“We are thrilled to have Carolyn McCall deliver our first annual lecture, an event that we believe will become a fixture in the UK aviation calendar. Carolyn’s experience leading one of the world’s most successful airlines promises a fascinating talk. Thanks to the support of Airbus and SITA, the event represents the next stage in BATA’s development”.

The invitation-only lecture and reception is taking place on 14 October 2015 at a prestigious central London location.

ENDS

24 July 2015

Summer Budget and APD – BATA Response

Responding to today’s Summer Budget, Nathan Stower, Chief Executive of the British Air Transport Association (BATA), said:

“By failing to properly address the damaging impact of APD in the Budget, the Government has missed a big opportunity to boost trade, tourism and competitiveness. This is disappointing when detailed independent economic analysis suggests that its abolition could increase economic growth, create up to 61,000 jobs, and pay for itself through higher revenues from other taxes.

“With the Scottish Government committed to halving APD following devolution of the tax, followed by full abolition, the status quo is going to become economically and politically unsustainable. Indeed, the Treasury has also today published a ‘discussion paper’ looking at possible responses in England to devolution of APD. The scope is too narrow and the three options for discussion are fundamentally flawed. The Treasury must also consider a significant reduction and abolition of APD across the UK if this review of options is to be credible.“

ENDS

8 July 2015

BATA response to Airports Commission final report

Responding to the publication of the final report by the Airports Commission, Nathan Stower, Chief Executive of the British Air Transport Association (BATA), said:

“Today’s final report is the result of nearly three years of hard work and detailed independent analysis by Sir Howard Davies and his team. We will study the recommendations and evidence in favour of Heathrow expansion in detail. We urge everyone to do the same with an open mind.

“The Government will now consider the report’s findings before reaching its own conclusion and this does not need to be rushed. Additional capacity is urgently needed, but not at any price and there can be no blank cheques. Our priority is to ensure that the final scheme is cost effective, offers value for money for airport customers, and does not rely on today’s passengers paying now for infrastructure that wouldn’t be ready until the mid-2020s. Airlines will work with Government to ensure that their decision meets the needs of passengers and cargo customers.”

ENDS

1 July 2015

Jane Middleton is new BATA Chairman

The trade body for UK airlines, the British Air Transport Association (BATA), has appointed a new Chairman. Jane Middleton will take up her role on 1^st July, when Dr Barry Humphreys, the Chairman for the last six years, stands down.

Jane said:

“I am delighted to be taking up this role at BATA at such an important time for the industry. BATA has an important role to play in representing its members’ views on issues ranging from airport capacity to tax and sustainability to consumer rights. I look forward to working with Nathan and the rest of team, as well as the members, to ensure BATA remains an effective and efficient voice for the UK airline industry. 

“I also want to pay tribute to Barry, who has performed sterling service as Chairman for BATA over the last six years.”

Jane has a varied and extensive career history in the aviation sector and as a finance professional – most recently as Chairman of the Aviation Club. She is a trustee of a number of organisations, including the RAeS, Airlink and the Dame Kelly Holmes Trust, as well as being an Honorary Air Commodore in the Royal Auxiliary Air Force. Jane has previously been involved at a senior level in the Air League, Women in Aviation International and the RAF Museum. With a business and corporate background, including roles at Rockwell Collins UK, TNT Express and Virgin Atlantic, Jane is now the Managing Director of a business consultancy providing strategic financial management.

Commenting on the appointment of his successor, Dr Barry Humphreys, BATA Chairman since 2009, said:

“I am delighted that Jane has been appointed to take over as Chairman of BATA. Her knowledge of the aviation industry and extensive contacts will prove invaluable in ensuring the continued protection and promotion of BATA member airlines’ interests, and I wish her all the best for the future. It has been an honour and a pleasure to chair BATA over the past six years.  During that time the industry has faced a number of major challenges, which it has met with great resilience, and BATA has similarly had to change. Everyone involved can feel proud of what has been achieved. I will watch future developments with continued interest.”

ENDS

26 June 2015