Air tax changes ‘put Birmingham Airport runway plans at risk’
22.07.08
Plans to extend Birmingham Airport’s runway have been put at risk by the Government’s planned changes to air tax, the Post reports. The aviation duty changes - the current per passenger tax is to replaced with a plane tax from next November - put the future prosperity of the region at risk by casting doubt on plans for a 400 metre runway extension, airport managers claimed.
Birmingham International is planning an ambitious 400-metre extension to the southern end of the runway, allowing it to cater for long-haul flights including direct flights to India, Africa and the West Coast of America. This would put the West Midlands on a level playing field with other UK regions, the airport claims.
But the airport says that it may become too expensive to begin operating new flights because of Government plans to replace existing air taxes, which are charged per passenger, with a new levy, charging a fixed amount per plane.
The new tax system is designed to penalise airlines which fly half-empty planes, causing more pollution per passenger than a flight which is fully-booked. But a spokesman for Birmingham Airport pointed out that new routes always take some time to build up passenger numbers, which means that planes may fly with empty seats at first. The Government’s proposals mean that these fledgling flights would be more expensive to run - and may not be economically viable.
The tax reforms have put ‘further stress’ on plans for a runway extension, the airport said in a statement. John Morris, Birmingham International Airport’s Head of Corporate Affairs, told the newspaper: ‘Adding around 400 metres to our runway will dramatically increase the capability of Birmingham Airport and the economic fortunes of the region - by providing the opportunity for direct flights to a host of long-haul destinations’.
‘The Government should be aware of the impacts of the so-called Aviation Duty. The Airport Company’s financial case will become even more challenging, and regional jobs could be jeopardised. The message to Government is, let’s have some clarity.’
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