Tax rises will hit passenger growth warn airport bosses

Robin Hood Airport
Robin Hood Airport

Doncaster’s Robin Hood Airport is demanding the Government ditch tax rises which they fear will hinder growth.

Bosses at Finningley are lobbying ministers claiming that changes to Air Passenger Duty (APD) will hit regional airports more than ones in and around London.

Peel Airports, which owns Robin Hood, is due to submit uits detailed response to an HM Treasury consultation on reforming passenger taxes highlighting the impact that the current system has on its business.

The firm is also raising concerns that it will be hit by ‘double taxation’ with the introduction of the European Union’s Emissions Trading Scheme in 2012.

Peel, which says taxes are more than eight times the European average, is among airport operators to have signed a joint letter calling for change.

Craig Richmond, chief executive, said: “Reform of the current APD is essential to help UK airports be more competitive against our European rivals and to stimulate passenger demand during what continues to be one of the most challenging economic environments that our industry has ever experienced.

“If the Government is committed to constraining the growth of the congested London airports and prefers to see regional airports take up this capacity, then the proposal put forward by a number of regional airports including Doncaster Sheffield, to replace APD with a charge on the busiest airports need to be seriously considered.”

A Treasury spokesman said the Government launched a tax consultation to achieve a “fair, simple and efficient” system. He added evidence submitted regarding the proposals would be considered.