10 Mai

Cardiff Airport calls for APD to be devolved

Ahead of the report from the Welsh Affairs Committee Inquiry into the devolution of Air Passenger Duty (APD) to Wales expected later this month, Cardiff Airport has reinforced its position on the matter – calling for the tax to be devolved and then reduced or abolished.

Cardiff Airport believes that the devolution and subsequent modification of APD in Wales offers a significant opportunity to create value for both the Airport and region, supporting an integrated UK aviation strategy without detrimental impact on airports across the border in England.

 

Devolution alone would not directly affect the Airport business however, it would offer the Welsh Government the discretion to set levels appropriately for Wales.

 

A letter (as attached) from the First Minister of Wales, Mark Drakeford to Cardiff Airport Chairman Roger Lewis reaffirms the Welsh Government’s commitment to using APD as an important economic tool and the opportunity it offers for Wales. Please click here to view the letter.

 

It is the subsequent reduction or abolishment of APD, which would positively affect Cardiff Airport and the regional economy by stimulating airline activity resulting in more passengers and business growth.

 

The subsequent modification (reduction/abolishment) of APD in Wales will benefit Cardiff Airport by;

  • Stimulating airline interest
  • Improving route viability
  • Improving the opportunity for airline growth
  • Increasing airport passenger numbers
  • Improving airport profitability

 

Customers will benefit by;

  • Increasing choice
  • Reducing costs

 

The region will benefit by;

  • Stimulating economic growth
  • Supporting the aspirations for a ‘Western Powerhouse’
  • Adding trade links
  • Stimulating inbound tourism

 

The UK will benefit by;

  • Reducing pressure on London Airports
  • Supporting an integrated UK Aviation Strategy

 

Deb Barber, CEO at Cardiff Airport said, “Cardiff Airport believes that the modification of APD offers a significant opportunity to create value for both the Airport and region supporting an integrated UK aviation strategy. With Brexit on the horizon, the UK should seize the opportunity and take forward solutions to be more competitive, stimulate investment and encourage global connectivity.

 

“Devolution allows the Welsh Government the discretion to set levels appropriately for Wales. It is the subsequent reduction or abolishment of APD, which would positively affect Cardiff Airport by stimulating airline activity resulting in more passengers and business growth. This supports aspirations for a ‘Western Powerhouse’ and an integrated UK Aviation Strategy.”

 

Devolving APD would give Wales parity with other devolved governments (Scotland and Northern Ireland) and has cross party support with representatives understanding the benefits a reduction or abolishment would bring.

Displacing air travel to/from London airports will help reduce carbon emissions from long car journeys by keeping air travel within the region.  

Evidence from Northpoint Aviation’s report into the impact of devolution of APD shows that the devolution of APD will not adversely affect Bristol Airport.  

More information on the Welsh Affairs Committee inquiry can be found here:

https://www.parliament.uk/business/committees/committees-a-z/commons-select/welsh-affairs-committee/inquiries/parliament-2017/air-passenger-duty-wales-17-19/