Aerospace

Cardiff Airport calls for APD to be devolved

Posted 10 May 2019

Ahead of the report from the Welsh Affairs Committee Inquiry into the devolution of Air Passenger Duty (APD) to Wales expected later this month, Cardiff Airport has called for the tax to be devolved and then reduced or abolished.

Cardiff Airport believes that the devolution and subsequent modification of APD in Wales offers a significant opportunity to create value for both the Airport and region, supporting an integrated UK aviation strategy without detrimental impact on airports across the border in England.

Devolution alone would not directly affect the Airport business however, it would offer the Welsh Government the discretion to set levels appropriately for Wales.

A letter (as attached) from the First Minister of Wales, Mark Drakeford to Cardiff Airport Chairman Roger Lewis reaffirms the Welsh Government’s commitment to using APD as an important economic tool and the opportunity it offers for Wales. Please click here to view the letter.

It is the subsequent reduction or abolishment of APD, which would positively affect Cardiff Airport and the regional economy by stimulating airline activity resulting in more passengers and business growth.

Deb Barber, CEO at Cardiff Airport said: “Cardiff Airport believes that the modification of APD offers a significant opportunity to create value for both the Airport and region supporting an integrated UK aviation strategy. With Brexit on the horizon, the UK should seize the opportunity and take forward solutions to be more competitive, stimulate investment and encourage global connectivity.

“Devolution allows the Welsh Government the discretion to set levels appropriately for Wales. It is the subsequent reduction or abolishment of APD, which would positively affect Cardiff Airport by stimulating airline activity resulting in more passengers and business growth. This supports aspirations for a ‘Western Powerhouse’ and an integrated UK Aviation Strategy.”

Devolving APD would give Wales parity with other devolved governments (Scotland and Northern Ireland) and has cross party support with representatives understanding the benefits a reduction or abolishment would bring.

Displacing air travel to/from London airports will help reduce carbon emissions from long car journeys by keeping air travel within the region.

Evidence from Northpoint Aviation’s report into the impact of devolution of APD shows that the devolution of APD will not adversely affect Bristol Airport.