Regional airports given a leg-up to woo new routes

REGIONAL airports have been handed a Budget boost from the Treasury after the Chancellor revealed plans to reform Air Passenger Duty, and give operators help to woo new airlines.

A spokeswoman at the Treasury said only smaller regional airports – which carry less than three million passengers a year – would be able to apply for the £10m fund which is available for two years.

This will mean good news for Liverpool John Lennon Airport, but not Manchester, which carries 20 million people a year.

The banding system for APD was also tweaked by the Chancellor so that all long-haul flights will now carry the same tax as a flight to the US – under the current system, the tax for flying 4,500 miles to Jamaica is £60 more than travelling 7,000 miles to Hawaii.

George Osborne said: “And because we want all parts of our country to see better links with the markets of the future we’re going to provide start-up support for new routes from regional airports, like Liverpool, Leeds or indeed Inverness.”

Darren Caplan, chief executive of the Airport Operators Association, the trade body for UK airports, said: “It is clear the Government has recognised that Air Passenger Duty represents a growing barrier to growth and investment, putting the UK at a competitive disadvantage compared to our nearest international rivals.

“The Treasury, in this Budget, has acknowledged that high levels of long-haul APD compromise our ability to provide the connectivity to both existing and emerging markets that we will need if we are to win in the global race.

“This reform of APD – together with the measures announced to assist the start-up of new routes from airports around the country – is a very welcome step.”

Manchester Airports Group, the operator of Manchester, Stansted, East Midlands and Bournemouth airports, welcomed the moves on APD, but is lobbying for more help.

A spokesman said: “We are delighted that the Chancellor has agreed to abolish the higher rates of Air Passenger Duty levied on long haul services.

“This will give the UK a much needed boost when attracting new services to growth economies such as China. It’s a good start but the Government can go further and we will continue to work for exemptions on new long haul services from regional airports. MAG has long argued for the reform of Air Passenger Duty and we are delighted that the Government has listened.”