Manchester and Newcastle airports raise devolved APD concerns
25.07.11
Ministers are facing a backlash from airports in the north of England over plans to devolve power on aviation taxes, amid fears it could lead to an exodus of passengers travelling north of the Border to catch flights, the Herald Scotland reports.
The Scottish Government has promised to lower Air Passenger Duty (APD) to cut fares and encourage the development of new routes. It has been pushing Westminster to honour a commitment to hand over responsibility for the tax to Holyrood.
However, the plans face an angry response from Newcastle and Manchester airports, which claim introducing a lower rate in Scotland would put them at a competitive disadvantage as passengers would drive north to get better deals. Both English airports have pointed to the example of Belfast International, which has lost a stream of passengers to Dublin since the republic decided this year to scrap its aviation taxes.
