Newcastle International welcomes consultation on aviation taxation
22-Jun-2010 Newcastle International Airport today expressed concern about the announcement by the Chancellor today that the government is considering switching from Air Passenger Duty to a Per Plane Duty.
Graeme Mason, Head of Planning and Corporate Affairs at Newcastle Airport, said "We are pleased that the Government has made a commitment to consult and we will play a full part in the consultation process. We are firmly of the view that switching the form of tax would prove to be a mistake. Air Passenger Duty is already at a level that regional air services are finding difficult to withstand, but a Per Plane tax would be even worse. It will not only further suppress demand, but it will also start to distort the marketplace. The new tax would specifically disadvantage regional services, threaten direct long haul services, and damage UK air freight. Added to this, of course, we are still navigating the effects of the recession and the recent volcanic ash crisis"
"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 aviations environmental performance. Unilateral taxes should be phased out after 2012"