FX Excursions

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Heathrow Wants United Kingdom to Scrap Passenger Duty

by Megan Hill

Oct 23, 2017
Feature

Heathrow Airport urges the United Kingdom to scrap the air passenger duty on all domestic U.K. flights this fall.

Because of the duty, U.K. passengers pay £225 million a year more in taxes on domestic flights than their European counterparts. Heathrow proposes a nine-point plan as an alternative, including advice on how to connect to global growth and prepare for Brexit.

The proposal says eliminating the duty would stimulate an 8 percent increase in demand for flights.

John Holland-Kaye, CEO, Heathrow, said, “Preparing for a post-Brexit economy means this budget must include practical, deliverable and binding plans to support all of the U.K. Abolishing APD on domestic flights is a bold move that would supercharge British competitiveness, make it cheaper for British businesses to get to London and beyond and ensure every part of our country can prosper in the future.”

Mark Povall, strategy director, Liverpool John Lennon Airport, added, “APD remains a barrier to airline growth here in the UK and will undermine the viability of such domestic connections.”

David Laws, CEO, Leeds Bradford Airport, said, “Connecting passengers from Yorkshire with the rest of the U.K. is an important part of our operation. By cutting APD on all UK domestic routes, it would be easier and more affordable for businesses and tourists to move through our airport and access our region, boosting jobs and growth in the process.”

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