End flight tax at Cardiff and Bristol, says Lewis
THE chairman of Cardiff Airport, Roger Lewis, said he would support air passenger duty on long-haul flights being abolished at Bristol Airport too.
It comes as Mr Lewis wrote to the Secretary of State for Wales, Alun Cairns, asking him why he “doesn’t support” devolving the £75 long-haul tax to the Welsh Government.
In September Mr Lewis first wrote to Mr Cairns calling on him to make the case around the cabinet table for APD on long-haul to flights to be devolved, for the purpose of its abolition and helping to attract more longhaul routes to Cardiff Airport, which is owned by the Welsh Government.
However, since then the UK Government has reaffirmed its position not supporting devolution of the aviation tax to Wales.
The tax across its three bands is devolved in Scotland and in Northern Ireland on long-haul services.
Following a response from Mr Cairns to his initial letter, the airport’s chairman has written to him again saying his reply didn’t address his specific points and the fundamental changes that have occurred over the past 16 months in relation to the Brexit vote and Cardiff Airport landing its first scheduled long haul service with Qatar Airways.
The daily service from Cardiff Airport to Doha will launch next May.
Mr Lewis wrote: “My one specific question is ‘why does the Secretary of State for Wales not support the devolution of APD to Wales on long-haul flights’?”
The chairman said the devolution of the tax for the purpose of its abolition, would have “no negative impact on Bristol as it currently doesn’t provide such a service [scheduled longhaul].”
His letter, which has also been sent to AMs and MPs adds: “Devolving APD to Wales on long-haul flights will create many new jobs, specifically in your own constituency [Vale of Glamorgan], and will significantly improve the performance of the Welsh economy.
“In our post-Brexit vote world we need to seize every opportunity to back winners and boost performance and by devolving APD to Wales we can achieve this.”
Mr Lewis said that he would also support APD on long-haul routes from Bristol being abolished too.
He added: “We would support Bristol having explicitly the same terms as us on long-haul APD full stop.”
Last week independent research commissioned by the Welsh Government, and carried out by aviation consultancy Northpoint, concluded that devolving APD on all bands, wouldn’t have a detrimental impact on Bristol Airport or the wider economy of the south west of England as outlined in a 2015 report which was commissioned by Bristol Airport.
Bristol Airport, although its runway is not as long as Cardiff’s, says it is still exploring securing new long-haul scheduled routes. Its last was with Continental to New York, although like Cardiff it has some chartered holiday long-haul routes.
Business development director at Bristol Airport, Nigel Scott, said it is in talks with existing airlines at the airport over the possibility of launching new long-haul scheduled routes.
And while not specifically mentioning Cardiff Airport, he said maintaining a level playing field on APD was vital to achieving a positive outcome.
Mr Scott said: “The strong shorthaul network available from Bristol is a real asset to the region we serve, but we know businesses in the South West are also looking beyond Europe for new opportunities to trade.
“That is why we are working hard with existing airline partners to increase the frequency of services to major hubs, as well as exploring the potential for more direct long-haul services east and west.
“A level playing field on rates of air passenger duty remains vital to achieving these ambitions.”
Just over four million Welsh passengers who lived within Cardiff Airport’s 60 minute travel to catchment, took flights in 2015.
Of these Cardiff Airport captured just 1.16m, implying that 73% of Welsh originating traffic is leaked over the border to airports in England.
On long-haul fights just over 850,000 Welsh originating passengers used English airports, with Heathrow the primary beneficiary.
Cardiff Airport’s total APD tax take currently amounts to £10m a year, of which only £1m relates to long-haul.
Chief executive of Cardiff Airport Debra Barber said a devolving of APD, for the purpose of abolition or reduction, would help increase passenger numbers by 500,000 a year by 2025.
And she said the cost to the Welsh Treasury would be more than offset by new jobs and investment created from attracting more airlines and routes at the Rhoose-based airport.
A UK Government spokesperson said: “The UK Government has looked at the issue of APD devolution in detail over recent years in line with our commitment in the St David’s Day Agreement. We made our position clear on this matter last year. Having considered the impacts of devolving APD on nearby English regional airports, we have ruled out the devolution of APD to Wales.”