Cut-price flights deal for Scots

Slashing ‘tourism tax’ in half will mean new routes and price cuts, say airlines

FAMILIES are set to enjoy cheaper flights from Scotland as a result of a cut to airport taxes.

EasyJet, Flybe and Ryanair say they will be able to offer low cost flights on more routes thanks to a Scottish Government plan to halve the price of Air Passenger Duty.

The tax is set to be devolved to the Scottish parliament under the post-referendum Smith Agreement. Scots currently face higher charges if they have connecting flights in England.

But politicians have warned that the plan will leave the SNP with a funding gap of more than £250million, previously raised by the tax.

Last night Sophie Dekker, easyJet’s UK director, said easyJet ‘has long campaigned f or t he removal of Air Passenger Duty’.

HOLIDAYMAKERS are set to benefit from a revolution in cheap flights under Scottish Government plans to slash a hated ‘tourism tax’.

Ryanair, easy Jet and Flybe yesterday j oined f orces to promise new routes and more flights to popular hotspots.

The Government plans to halve Air Passenger Duty (APD), making it cheaper for families to fly, which will increase demand and make routes more ‘viable’ for airlines.

The tax is to be devolved under the post-referendum Smith deal.

Because it is levied on ‘departures’, passengers are often unfairly penalised if they have to change flights in Manchester or london. APD adds around £50 to the cost of a trip to Spain for a family of four or £275 for a holiday in Florida.

But the tax raises more than £250million a year from Scotland. That will leave the SNP with a black hole in its finances as extra demand is unlikely to make up the loss from slashing APD in half.

labour has demanded a better explanation of the calculations, while the Scottish Greens warned that climate change emissions would rise by 60,000 tonnes a year. However, Sir John Elvidge, chairman of Edinburgh Airport, said APD is ‘placing a drag on economic growth, costing jobs and millions of pounds in lost revenue’.

Sophie Dekkers, easyJet’s UK director, said: ‘When APD is halved passengers in Scotland will quickly feel the benefit, with easyJet and other airlines adding more services and launching flights to new destinations.’

Paul Simmons, chief commercial officer of Flybe, said there would be two key impacts: ‘Firstly, some international routes are likely to become viable.

‘Secondly, there is likely to be a price reduction for the consumer on domestic flying.’

Kate Sherry, Ryanair deputy director of route development, said: ‘One need only look to Ireland to see the effect scrapping APD has had, with tourist traffic rising by almost 10 per cent since APD was abolished in April 2014 and the VAT received from the additional tourist spend far exceeding the loss of APD.’ The Scottish Government yesterday held a ‘ stakeholder forum’ ahead of a consultation on the future of APD.

Deputy First Minister John Swinney said: ‘Scotland’s airports are busier than ever and the Scottish Government wants to see that success grow further.

‘The APD stakeholder forum brings together interested parties – f rom those i n the aviation industry to environmental groups and tax practitioners – to provide expert input into how a replacement tax could work.’

But Scottish Green leader Patrick Harvie said the Scottish Government ‘needs a replacement tax that will cut pollution without making aviation unaffordable’.