Budget 2014: Chancellor looks to help regional airports to fly higher
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 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.
The banding system for APD was 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.”
A spokesman for Virgin Atlantic welcomed the changes tom stating : “The Government has rightly recognised the damage APD is having on exporters and the travelling public alike.”
