WHITEHALL chiefs have received their sternest warning yet that hikes in flight levies could impact on major airlines operating in the North East.

Emirates’ UK boss has said if increases in Air Passenger Duty (APD) became too great, larger airlines would be force to consider their position at UK hubs.

The airline’s Vice President for UK & Ireland Laurie Berryman told The Journal that, like all carriers, he would be forced to consider Emirates’ operations if passenger numbers dropped off following a duty rise.

The claim comes after the Coalition gave its strongest hint yet that the Treasury may hold a full review into air duty following the budget this April.

The potential impact on major airlines like Emirates, which has been vital in helping the region develop international trade and tourism links, is something business leaders said they remain committed to campaigning against.

Mr Berryman said: “If APD goes up, any tax expert will tell you, it will hurt air travel because people will think twice.

“It certainly makes you think, it makes other countries which don’t have levies more attractive. It’s very interesting Ireland saw APD as hurtful to the industry, as did Holland.

“In that position all they did was drive across the border. I realise that may not so easily be the case in the UK, but it is still something the Government needs to consider.”

Mr Berryman strongly insisted there is no threat to Emirates’ presence at Newcastle, where the airline has enjoyed an “excellent” relationship.

Instead he suggested the national carrier for Dubai will look to grow its presence in the North East over the coming years.

However Mr Berryman described APD as “an extraordinary tax” and called for it to be reduced all over the country.

The airline chief also threw his weight behind calls for regional differentiation, which he said should be considered to help regional airports grow.