Airport boss positive on long haul, despite APD concern

THE boss of Manchester Airport says he is confident on further growth in long haul routes, despite the the Air Passenger Duty tax putting it at a competitive disadvantage over rival locations such as Dublin.

The Irish hub is seeing strong long haul growth, particularly to the US (up 42% according to its website), due mainly to Ireland’s low corporate tax regime and the absence of any APD-style levy.

Ken O’Toole, managing director of the airport, told TheBusinessDesk, “Our growth prospects are positive, I believe there are 25 new long haul routes that with our strong catchment area and runway capacity that are viable.

“We have more than 100 flights oer week to America, which is significant in anyone’s book, but APD is a factor which airlines take into account when they look at new routes.

“When we compete for routes we do so on a global basis and airlines look at taxation as part of the cost of business. In terms of long haul it’s a significant amount – something like £71 for an economy seat.”

He said the Irish government had implemented a similar tax to APD, but quickly scrapped it.

“The truth is, the UK has one of the highest aviation tax regimes in Europe, and it does make us uncompetitive.”

Manchester has previously lobbied the government for it to take a regional approach to APD – for example there are plans for the devolved Scottish executive to be handed control.

With regard to the expected Government announcement on what it’s going to do to expand capacity in the South East, O’Toole said MAG would be lobbying hard for there to be recognition of the role both Manchester and Stansted can play in the next 15 to 20 years – the likely timescale for expansion at Heathrow or Gatwick.

“We believe with our capacity we have a very significant part to play in UK aviation policy.”