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Heathrow Airport says UK domestic airport tax needs scrapping

Heathrow Airport A4In an open letter submitted to the UK’s government, Heathrow Airport says the Air Passenger Duty needs abolishing. The proposal was one of a series of recommendations for improving the London airport’s services, facilities and transport connections submitted to Chancellor of the Exchequer Phillip Hammond.

The letter says the abolition of the APD could be included in the next budget due out on the 22 November. Heathrow CEO John Holland-Kaye says the budget should feature practical and fixed measures to ensure the UK economy survives after Brexit.

He carried on by saying the end of APD would ensure more freedom of movement for the country’s industries and businesses. He noted that cheaper travel would make UK businesses more competitive. The APD tax for round-trip domestic flights is currently £26.

Heathrow executives have already done their homework and claim the £26 reduction in fares would lead to an eight per cent rise in demand for domestic airline travel from the airport. They say increased demand would mean more airlines would be interested in launching new routes as they would be able to make more money.

Based on current figures, the scrapping of APD at Heathrow would save passengers £24 million a year. For the UK as a whole, the savings would be £225 million. Other UK airport executives have voiced their support for the abolition of APD.

David Laws is the CEO of Leeds Bradford Airport and he says the move would make flying domestic more affordable for leisure and business travellers. Mark Povall is a director at Liverpool’s John Lennon Airport and he explained that APD was restricting the growth of the UK’s domestic airline network.

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