THE future of North East air travel could be jeopardised if Scotland is allowed to vary or abolish APD, it was last night warned.
Transport chiefs in the region will today tell the Government if the devolved administration in Scotland is allowed to decide its own aviation tax policy, it will abandon or lower current levies, attracting major airlines to its airports.
Bosses at Newcastle International Airport fear their flagship carriers, including Emirates, could be tempted to withdraw their routes from the North East as passengers would pay less or no taxation north of the border.
The concerns have been raised as a consultation on the future of aviation tax, announced by the Chancellor in the budget, closes today.
An alliance of regional airports, led by Newcastle Airport and The Journal, will call on George Osborne to replace current Air Passenger Duty (APD) with a new congestion charge, which could finally iron out the inequalities regional airports face.
As it stands, smaller hubs such as Newcastle Airport are being hit significantly harder by the “unfair” levy, which could see airlines withdraw their key routes if they no longer see them as profitable.
An official document, which will be submitted by airport chiefs today, will outline the importance of the Treasury following the recommendations, to boost economic recovery outside the South East of the country. The submission will also stress the danger posed to regional hubs by allowing devolved administrations in Scotland, Wales and Northern Ireland, to vary their own rates of APD.
Graeme Mason, planning and corporate affairs director at Newcastle International, said: “It is vital the Government does not allow devolved administrations to design their own aviation tax policy. They will simply remove it, or drop it so low, airlines have no decision left to make, and move their operations across the border.