Ryanair plans grounded after tax cuts are delayed

AN airline is set to halt plans for a major investment next year after SNP ministers delayed proposals to cut a ‘regressive and damaging tax’ on air travel.

Ryanair planned to introduce a number of new routes to Europe from Edinburgh and Glasgow if Air Passenger Duty (APD) was cut by 50 per cent as planned in 2018.

But in October, Finance Secretary Derek Mackay said plans to replace APD with a devolved Air Departure Tax (ADT) are likely to be delayed until after Brexit.

He claimed moves to cut the levy could not go ahead now as exemptions needed for passengers using Highlands and Islands airports would require EU approval.

This means there will now be a substantial delay to not only cutting APD but also scrapping it completely.

Yesterday, Ryanair revealed it would continue to stick by the original commitment to grow ‘Scottish traffic’ if ‘APD is scrapped’ signalling it will halt moves to increase routes from Scotland.

‘Ryanair urges the Scottish Government to end their ceaseless “consultations” and act in the interests of Scotland by abolishing APD,’ it said.

Scottish Conservative transport spokesman Jamie Greene said: ‘The SNP seems to have completely lost its nerve.’

A Scottish Government spokesman confirmed the introduction of ADT had been ‘deferred until the issues raised in relation to the Highlands and Island exemption have been resolved’.