Airport Operators Association: Airports ready to work with Government on Per Plane Duty proposals
22-Jun-2010 Commenting on the decision by the Government to take forward its proposals for a Per Plane Duty, Ed Anderson, Chairman of the Airport Operators Association said “We remain concerned that the Government still intends introducing a per-plane duty but are pleased that they are willing to consult the industry first. We will work with the Government to ensure that the impact of a Per Plane Duty on the viability of routes and regional connectivity will be minimised.”
Ed Anderson added, "From 2012 aviation will enter the EU Emissions Trading Scheme, a cap and trade scheme where the industry will have to pay for any emissions over its cap. We believe this to be the most credible approach, short of a global deal, to tackling aviation's environmental performance. Unilateral taxes should be phased out after 2012."
Notes
1. The Airport Operators Association (AOA) is the trade association that represents the interests of British airports. Our membership comprises 72 airport companies, representing all of the nation's international hub and major regional airports in addition to many serving community, business and general aviation.
2. Air freight represents 1.3% by weight, but 50% by value of UK extra-EU exports (DfT 2007). 65% of air freight travels in passenger aircraft, which are already covered by APD and are thus in the scope of 'environmental' taxes on aviation. 20% of all air freight brought to the UK is being transhipped elsewhere (CAA 2007). If transhipment becomes less viable then the case for maintaining hub operations in the UK weakens as well.
3. The connectivity of the UK's airports is particularly important for the wider economy. Direct services to UK regional airports are vital for regional economies to grow. These direct flights make travel easier and attract inward investment. The number of international routes from UK airports fell by 18% in 2009 (AOA 2010). A tax per flight makes it less likely that regional airports will be able to retain and attract long-haul in particular.
4. Transfer passengers, who are currently exempt from APD, would be included within a PPD and this will act as a disincentive for them to travel through UK hub airports. Instead, they will avoid the duty and travel via rival European hubs on other European carriers. Transit / transfer traffic is a key factor in making many long-haul routes viable and is a market in which the UK has fallen behind in recent years. In 1990 Heathrow served 227 international destinations. This had fallen to 180 by 2006.