Chief executives of major airlines have urged Sajid Javid to cut Air Passenger Duty (APD) to combat Brexit blues. Chiefs of easyJet, Ryanair and British Airways' parent company IAG signed a letter to the chancellor warning that the tax is hindering “UK connectivity”.
APD is the highest aviation tax in Europe and the highest rate in the world for long-haul flights which results in relatively higher routes when operated from the UK.
Their letter stated that Germany’s comparable tax to APD is around half of the UK’s, and the former has more direct connectivity to China, Japan, South Korea and Brazil.
Last year, research conducted by trade body Airlines UK identified 66 potential new routes such as Liverpool to Southampton, Belfast to Madrid and Edinburgh to Delhi that could be more viable if APD was abolished. The rate of APD for long-haul passengers is £78 in economy and £172 in premium seats, with short-haul trips charged at £13 in economy and £26 in premium cabins.
