APD increase must be halted, airports demand

AOA chairman Ed Anderson told secretary of state for transport Justine Greening and 1,200 representatives of the industry at the association’s annual dinner: “The current level of APD is a major reason why airlines will not put on new routes from our members’ airports.

“Aviation contributes £50 billion a year to the UK economy and pays £8 billion in tax. Next month we have a double inflation increase in APD. Enough damage has been done. There should be no more increases.”

Anderson added: “It’s perverse that a further increase in APD is planned on the eve of the Queen’s Diamond Jubilee and the London Olympics and as the government starts a campaign to encourage more visitors to the UK.

“A year ago the Chancellor cancelled a planned increase. I urge the Chancellor to cancel this increase.”

Greening told AOA members: “I hear what you say about APD and will make sure my Treasury colleagues hear it too.” However, she said: “APD has become more important than ever as we pay down the debt.”

She argued: “The government is committed to maintaining the country’s global hub status.” But then Greening added: “Only China and the US have more extensive connections than the UK and London is the best-connected city in the world.”

Greening is a former Treasury secretary who worked on the government review of APD last year that ruled out a reform of the current banding structure.