Airport News
Airport Passenger Duty increase will not affect airlines
Thu, 23 Jul, 2009
The government's decision to increase Airport Passenger Duty (APD) will not affect airlines, according to the Air Transport Users Council (AUC).
James Fremantle, industry affairs manager at the AUC, noted that the lower fares that passengers are currently enjoying will mean that passengers will not necessarily feel the increase economically.
He said: "If you look at flights to the Far East, the prices have come down in such big amounts. An increase an APD will not make much of a difference.
"It may be more relevant to no-frills airlines; they may have to change their market. They may start building bases elsewhere but I think if airlines want to get to the UK market, they are going to have to put up with the increase in Air Passenger Duty."
His comments come after budget air operator Ryanair announced that it would cut its capacity of flights scheduled at Stansted this winter by 40 per cent.