Scottish Government calls for Air Passenger Duty control
Transport Minister Keith Brown has demanded an update from the Treasury on the devolution of Air Passenger Duty to Scotland and the protection of the country’s access to London airports.
It comes as the chair of Visit Scotland warns over the impact of APD on tourism in the wake of last week’s announcement that Flybe had sold all its take-off and landing slots at London Gatwick airport to Easyjet for £20 million.
The development has prompted concerns about the Inverness-Gatwick service when Flybe ceases operating the route in March, next year.
High levels of Air Passenger Duty (APD) and landing charges at London airports were both cited by Flybe as factors in their decision.
Mr Brown said: "Whilst we have sought and received welcome assurances from Easyjet on its continuing commitment to Inverness, there can be no guarantees at this stage that overall capacity and service provision will not be diminished.
"Myself and other Scottish Ministers have raised the issues of APD and access to London with Danny Alexander and his colleagues in the Treasury repeatedly, warning of the danger both presented to the Scottish economy.
"Perhaps now that Mr Alexander’s own constituency in the Highlands is set to suffer the consequences, these warnings might be taken more seriously.
"The punitive levels of Air Passenger Duty in the UK are cited time and time again by airlines and airports as an obstacle when it comes to securing new routes and indeed maintaining existing routes.
"And now we have Flybe highlighting the issue as a factor in their decision to withdraw from Gatwick, a move that could see the Highlands suffer.
"I have therefore asked Mr Alexander for an urgent update on his department’s current position regarding this issue, an issue of significant and immediate importance to Scotland and indeed to his constituency.
"Responsibility for APD should be passed to Scotland as soon as possible. This was recommended by Calman in 2009 and the UK Government has had ample time to follow through on its initial agreement to do so.
"I am aware that landing charges are primarily a commercial consideration for the airports concerned but we have made it clear to the UK Government that if left up to market forces, Scotland’s access to London will continue to diminish. We have therefore asked that the UK Government looks proactively at how Scotland’s access can be secured, but again, this has not been taken forward."
Mr Brown has already been in discussions with Easyjet regarding the future of the Inverness-Gatwick link and will be keeping in regular contact with the airline to press the case.
VisitScotland Chairman Mike Cantlay said: "Times are tough for tourism businesses and visitors are increasingly looking for best value. We need the UK Government to look at how we can make our tourism industry more competitive.
"There are major concerns that the UK and Scotland may price itself out of the market for overseas visitors. We are particularly reliant on air service access and UK Air Passenger Duty is the highest of any major European country which immediately puts us at a disadvantage."
