Government accused of underplaying impact of aviation tax on airports
Nov 21 2009 by Adam Jupp, The Journal
Even then, the projected throughput at Newcastle International in the worst case is around five million, while the estimated impact of APD remains the same.
Graeme Mason, head of planning and corporate affairs, said: “The Department for Transport data predicts that APD will have a negligible impact, but is flawed because it does not take into account the drop in passenger numbers resulting from the recession, and does not appear to address regional variations in impact.
“Its greatest flaw, however, is that it doesn’t take account of the impact of previous APD increases, particularly in the regions. Newcastle International Airport saw the loss of hundreds of thousands of passengers as a result of the most recent hike in APD, back in February 2007.
“The airport lost a number of key routes and, furthermore, a full easyJet aircraft was withdrawn from service as a result of the increases – resulting in the loss of at least 300,000 passengers. We question the validity of the statistical modelling adopted by the Government, which does not appear to take account of the true economics of airline operations, particularly at regional airports.
“To this end, we would welcome a further meeting with ministers and civil servants in order to gain a better understanding of how they arrived at their projections.
“Consultation with regional airports is crucial if Government is to gain an accurate understanding of the potential impact of future increases in APD.” APD is levied on how far the capital of the destination country is from London and there are four bands, all of which rose in November, having previously doubled in 2007. The tax on an economy short-haul flight to Europe or North Africa has risen from £10 to £11 and in November next year will be £12.
The figures also predict a “central case” of 1.1 million passengers at Durham Tees Valley, with APD leading to just 245 fewer passengers using the airport next year. In 2014, the chart suggests, there will actually be nearly 9,500 people flying out of the airport despite APD increases.
Hugh Lang, boss of the airport, said: “I don’t know where they get these figures from.”
A DfT spokesman said: “Our passenger forecasts are designed to help inform our long-term aviation strategy and while we believe they are robust, they will naturally diverge from actual airport data from time to time.”
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