Cardiffbay
Well-Known Member
Today’s Glasgow flight is one to see today. ATR 72 from Nordica.
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https://assets.publishing.service.g...f_air_passenger_duty_on_regional_airports.pdf
In 2015 HM Treasury published a discussion paper on options for supporting English regional airports from the impacts of air passenger duty devolution (see above link).
The paper looked at devolving APD within England; varying APD rates within England; providing aid to regional airports within England.
The sticking point with the first two is that, as long as the UK remains within the EU or leaves with a deal that somehow incorporates a continuation of the single market in any leaving agreement, the UK will almost certainly have to continue to comply with EU regulations including state aid.
The 'Azores criteria' stipulates that for tax powers to be devolved by a member state to a regional authority, that regional authority must bear a sufficient degree of fiscal and autonomy from central government (the necessary degree of the autonomy is outlined in greater detail within the discussion paper). The Welsh and Scottish governments clearly have a sufficient degree of autonomy for tax devolution - they aren't regional authorities as we think of such bodies but have already had some tax powers (but not yet APD in Wales) devolved to them by the member state, ie the UK.
Regional or combined authorities in England don't have that autonomy at the moment and their budgets and powers would have to be greatly increased for them to be so regarded. The current West of England Combined Authority for example has a budget of £30 million a year which is little more than half the APD that BRS generates each year. The BRS APD equivalent would be deducted from central government funding if that authority axed APD, leaving it minus around £20 million each year instead of plus £30 million.
The same hurdles apply to varying APD within England although the Treasury did muse in its paper that it might be possible to vary APD within England according to airport congestion and remain within EU rules. The paper spoke of seeking the EC's views but I'm not aware that the Treasury ever did ask.
The third leg of the paper is not directly relevant to APD so I'll leave that although it is discussed within the linked paper if anyone wants to read it.
Clearly this paper was produced on the basis that APD would be devolved to the three national governments within the UK. Apart from the state aid difficulties, the problems that the Treasury sees and quoted within the paper (the additional burden of tax collection and consequences on some airports for example) seem to be why the question of Welsh APD devolution remains in the long grass.
With Flybe now withdrawing the base i'm wondering if maybe in the long run it might be better if they as an airline drop Cardiff completely. As an airline they obviously don't feel that Cardiff is either important enough or profitable enough for them to continue to base and for the airport away based flights would be a poor subtistute. If it means that Cardiff loses routes like Edinburgh, Belfast, Glasgow, Paris and Jersey in the short term then so be it but in the long term routes like that could be attractive for other airlines to step in on and take up, assuming they are profitable of course. I personally wonder if the relationship between the airport and the airline will be too damaged for it too continue.
With Flybe now withdrawing the base i'm wondering if maybe in the long run it might be better if they as an airline drop Cardiff completely. As an airline they obviously don't feel that Cardiff is either important enough or profitable enough for them to continue to base and for the airport away based flights would be a poor subtistute. If it means that Cardiff loses routes like Edinburgh, Belfast, Glasgow, Paris and Jersey in the short term then so be it but in the long term routes like that could be attractive for other airlines to step in on and take up, assuming they are profitable of course. I personally wonder if the relationship between the airport and the airline will be too damaged for it too continue.
To me it depends on where the traffic is originating from. If the bulk of the traffic originates from South Wales then the ability to do day trips to places like Edinburgh and Belfast and Dublin during the work day will be reduced.Currently people travelling from CWL to DUB/EDI/BHD arrive into those cities earlier, but anyone travelling TO CWL from those cities arrive later. Being non-based just flips that around, meaning arriving into CWL earlier.
It would be too expensive to over night 2 planes 5 nights a week. You would have the cost of aircraft parking. The other cost would be the hotel prices,i don't know if the crew stops at an away airport if they would also get some form of payment. With them costs it would be cheaper to base aircraft.To me it depends on where the traffic is originating from. If the bulk of the traffic originates from South Wales then the ability to do day trips to places like Edinburgh and Belfast and Dublin during the work day will be reduced.
As for Flybe yes they are the most likely ones to be able to operate a domestic network but looking from the airports point of view are they reliable as partners any more and as I said on the other forum if the routes weren't profitable when they were non based before in 2013 what has changed now?
Hopefully the airport will be able to salvage something. I do wonder if the airport could persuade them to overnight an aircraft for EDI and BHD at least.
Surely not as expensive as operating a base though and the airport may well be willing to waive parking charges. Personally I'd be surprised if Flybe are paying parking charges under the current deal.It would be too expensive to over night 2 planes 5 nights a week. You would have the cost of aircraft parking. The other cost would be the hotel prices,i don't know if the crew stops at an away airport if they would also get some form of payment. With them costs it would be cheaper to base aircraft.
Surely not as expensive as operating a base though and the airport may well be willing to waive parking charges. Personally I'd be surprised if Flybe are paying parking charges under the current deal.
I was told elsewhere that it was the cheaper option due to expenses like airside passes and stuff like that not being required not too mention not having to employ employees, maybe that person was wrong?Over night parking is a different deal. You do a bit of asking around and people will say base of aircraft is cheaper than over night parking. Its always been this way.Long haul is different as only the crew expence to pay for
I would say poor journalism with what we have read in various news papers.This article says that Flybe account for 200,000 passengers a year from Cardiff but recently I estimated it at over 500,000. Poor journalism? Or maybe a bit of PR spin!
https://www.walesonline.co.uk/busin...3375#ICID=Android_WalesOnlineNewsApp_AppShare
The only problem I see at both airports would be a morning flight. Unless they base other aircraft they would have to sacrifice a departure to bigger airports.I would therefore hazard a guess that EDI & BHD should continue in some shape or form (up to 2 x daily)
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