Home Business Travel Air tax cuts needed to boost business travel after Brexit

Air tax cuts needed to boost business travel after Brexit

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A cut in air taxes is needed to protect growth after Brexit, two major airlines said today.

American Airlines and Emirates joined with Heathrow Airport in warning that British business travellers are being charged more than continental neighbours.

Campaign group A Fair Tax on Flying said cutting Air Passenger Duty by half could boost UK earnings by £5 billion in the first year, rising to £20 billion by 2022.

Rhett Workman, managing director of American Airlines at Heathrow, said: “Post-Brexit Britain needs to be open for business.”

Sir Tim Clark, president of Emirates, said: “UK aviation taxes are among the highest in the world. Cutting them will benefit consumers, stimulate more leisure and business travel, and send a strong signal that the UK is serious about building ever stronger international air and trade links, particularly in the post-Brexit world.”

APD was introduced by Gordon Brown in 1994 as a charge on holidaymakers and other travellers. It ranges from £13 for short-haul economy flights to £75 for long-haul business class.

Heathrow argues that a cut would allow it to open more routes for post-Brexit trade. It says the UK paid £225 million more in taxes on domestic flights alone than counterparts in other EU countries.

The calls come ahead of the budget on November 22.

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