Liverpool Airport managing director, Neil Pakey, has called on the Government not to 'tax planes out of the sky' at a time when fuel prices are crippling airline profits. The Treasury is planning to reform Air Passenger Duty (APD), which is added to the cost of every plane journey from the UK - and Mr Pakey is urging it not to add to airlines' costs at a time of record fuel prices.
Mr Pakey said Liverpool Airport's growth is likely to slow on the back of cuts by airlines and a weakening economic environment. He said: 'We might not see any growth in the winter. I think apart from fuel prices we might have had a good year on the back of Capital of Culture, but we're all probably seeing a period of consolidation during the winter.'
'There's nothing we can do about fuel prices, but the Treasury is in consultation over Air Passenger Duty and we would urge them to think very hard about the economic impact of the tax in the context of high fuel costs. One region of the UK estimated that, for every 1 spent investing in air services, the region got 44 times that in economic benefit. Given that, you don't want to tax planes out of the sky.'
In 2007, the Government announced Air Passenger Duty was to be replaced by a duty paid on a per-plane basis. The plan has been out to consultation, and officials are analysing the results ahead of a detailed announcement later this year. The tax is in addition to the carbon trading credits, which could be introduced next year. |
