Scottish agents are demanding an overhaul of Air Passenger Duty in next week’s Budget following the collapse of Flybe.
A “complete review” of the air tax is needed to protect fragile air routes, support business and stimulate economic growth.
The call came from Scottish Passenger Agents’ Association president Joanne Dooey, who described the failure of Flybe as “devastating for the industry and a disastrous blow for regional connectivity”.
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She said: “Along with our colleagues in the campaign group Fair Tax on Flying, we have lobbied for many years for a reduction in Air Passenger Duty.
“The SPAA would go a stage further and ask for a complete review in the total structure of APD to protect fragile routes, support business and stimulate economic growth.
“Immediate intervention is needed, and we sincerely hope that there will be reduction in domestic APD in next week’s Budget, thus supporting the government’s stated desire for regional connectivity.
“A more entrepreneurial approach to reducing or removing the tax, which the travel industry believes will encourage airlines to introduce more flights from UK airports, surely must come now in the face of Flybe, a major short haul operator, going out of business.
“Airlines are more likely to invest if the tax is reduced or removed. The government still needs to look beyond the short term and think of the long-term health of our economy and our tourism industry.
“As Flybe provides a great number of short-haul flights connecting regional airports, the best outcome would be for another carrier to step in and provide these services, which provide essential connections for businesses, communities and tourism.”
She added: “An airline failure levy is something that the SPAA has long campaigned for.
“Had our suggestion that fares from all UK departures ringfence a simple £1 per ticket passenger levy been listened to when it was first raised 20 years ago, every single passenger who has ever lost money due to an airline failure could have been repatriated or refunded at no cost to the public purse.
“It is unfortunate that Flybe passengers will receive no refund unless the flight has been booked and paid for by credit card, or the passenger has airline failure insurance or is covered under the Atol scheme, as part of a package.
“We sincerely hope that a solution can be found to fill the glaring gap that arises with the loss of such a significant operator.”