Heathrow urges the government to scrap aviation taxes that could save passengers £225m

Ahead of the upcoming autumn budget in a letter to Phillip Hammond, Heathrow has urged the government to scrap domestic Air Passenger Duty (APD) on all UK flights.

This comes after Frontier Economics revealed that UK passengers are paying an extra £225m in aviation tax on domestic flights compared with European counterparts.

The proposal is part of a new plan unveiled by the airport today (September 20) to connect more of the UK to growth and prepare the economy for Brexit.

Heathrow’s CEO John Holland-Kaye, said: “Preparing for a post-Brexit economy means this budget must include practical, deliverable and binding plans to support all of the UK. With an ambitious new nine-point connectivity plan, Heathrow is doing its part to connect all of Britain to growth - it’s now time for the government to act.

“Abolishing air passenger duty on domestic flights is a bold move that would supercharge British competitiveness, make it cheaper for British businesses to get to London and beyond and ensure every part of our country can prosper in the future.”

Taxes on a return domestic flight from Heathrow are currently £26, and abolishing these would save passengers at least £24m annually at Heathrow alone.

Getting rid of domestic APD is Heathrow’s next step in reaching its goal of connecting to at least 14 UK destinations once expanded, which includes the potential for new flights to Humberside, Newquay and Liverpool.

Most European countries have little to no tax on internal flights to boost their economies, whereas UK APD is the highest tax of its kind in the EU.

Christine Ourmieres-Widener, Flybe’s chief executive officer, commented: “Flybe welcomes and supports Heathrow Airport’s campaign to scrap Air Passenger Duty on all domestic flights across the UK.

“Removing APD on domestic flights would help drive UK economic development and mobility, but more importantly would bring down the cost of air travel for the everyday travelling public.”

Heathrow is the biggest airport in the UK, and has been a campaigner for improving domestic access to the airport. It has announced a £10m Route Development Fund to support new domestic flights and is currently reviewing its charges to further support domestic passengers.

Some northern airports have discussed this, saying the abolition of APD would be positive.

For instance, Mark Povall, strategy director for Liverpool John Lennon Airport, said: “An expanded Heathrow would offer the opportunity for unserved UK airports such as Liverpool to have access to the UK’s hub airport for improved worldwide connectivity…

“However APD remains a barrier to airline growth here in the UK and will undermine the viability of such domestic connections.”

Leeds Bradford Airport’s CEO, David Laws, also commented: “Connecting passengers from Yorkshire with the rest of the UK is an important part of our operation.

“By cutting APD on all domestic routes, it would be easier and more affordable for businesses and tourists to move through our airport and access our region, boosting jobs and growth in the process.”

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