Isra-Mart srl: Government plans will price people off flights, warns regional airport

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The owners of Liverpool airport have called on the Government to rethink its aviation policy, which they say will suppress demand for air travel from regional airports.

Peel Airports Limited warned that travel behaviour in the regions is price-led and said further increases in air tax would price a large proportion of passengers out of air travel.

In submitting their response to the Department for Transport's proposal for a Sustainable Framework for UK Aviation, Peel Airports said it had failed to set out a clear policy that would grow the industry's contribution to both regional and national economies. Instead, they claimed the plan would constrain growth by suppressing demand for air travel.

"Such policies are in stark contrast to the Government's stated aims of the policy, which stated "......We want to explore how to create the right conditions for regional airports to flourish"," Peel said.

They said the the proposed policy framework failed to address the fact that UK aviation pays the highest taxes in the world, with further increases in air passenger duty (APD) planned next year, when airlines will also have to pay the cost of entering into the EU Emissions Trading Scheme.

"UK airports are now far less attractive options for airline business than many of their European competitors, whose own Governments abolished their equivalent of APD. Under these latest proposals, this lack of a 'level playing field' is set to continue," they said.

Peel warned that High Speed Rail, which is viewed by the Government as a substitution for domestic and short-haul flights, will only benefit a small number ofairports and those regions to be served by faster train services, at the expense of others.

Peel Airports also questioned the validity of passenger forecasts used in developing the Government's proposals which show only minimal growth over the next 20 years, claiming they failed to recognise a number of developments across the regions, which it believes will stimulate growth in air travel.

Chief executive Craig Richmond said:"We welcome the Government's review on future aviation policy, however we have one chance to get this right, otherwise regional airports and the regions they serve will have their economies damaged for the longterm.

"The Government has stated on numerous occasions in the past that it recognises the importance of aviation for economic growth and rebalancing of the UK economy. Sadly these latest proposals contradict the desire for aviation related growth and we are calling upon the Government to implement a long-sighted aviation policy."