Loganair chief issues warning over Scotland’s air departure tax

Loganair chief executive Luke Farajallah has warned about the potential impact of Scotland’s air departure tax, set to be introduced in April next year.

He said: “Higher taxes on aviation will discourage airlines from operating in Scotland. They will reduce choices of visitors and ultimately limit the growth of local businesses that rely on inbound tourism.”

During the Scottish Passenger Agents’ Association annual dinner in Glasgow, he also said authorities need to ensure Scotland’s cities always “impress”, adding: “Every dirty street, every poorly maintained bus stop and every unlit alley tells visitors Scotland is not ready for them.”

In a further message to the Scottish government, he said the country’s income tax levels are making it challenging to attract leading talent.

Fellow speaker Peter Shanks, Silversea Cruises’ retired managing director for the UK and EMEA, said Holyrood politicians should be “very careful” when considering whether to introduce a cruise ship levy.

“Ships can indeed move, and it’s quite possible that there’s a deployment team in Miami who may look at those additional taxes and decide to take the ships to the Mediterranean instead,” he said.