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Fears tax change may drive flyers to Cardiff
Moves to hand control of air passenger duty to the Welsh government could have a devastating affect on business at Bristol Airport, bosses have claimed.
The Government is looking at new ways of handling the controversial "tax on flying" and one of the options on the table is handing control over to devolved government, including the Welsh regional assembly.
Bristol Airport, along with the rest of the aviation industry has campaigned against increases in duty.
Airports and airlines estimate that the cost of a family holiday for four could go up by £200 if proposed changes are introduced.
And bosses believe if control was handed over to the regional assembly in Cardiff the Welsh capital's airport would be given an unfair advantage.
Cardiff is Bristol's main rival but the Lulsgate airport has always been able to attract more of the airlines.
This year just under six million passengers travelled through the airport and the plan is to increase the total to ten million once the terminal is expanded as part of a £150-million development due to start next year.
Despite the recession and the slump in the holiday trade, Bristol is still the country's fastest growing airport and is now the ninth largest in the UK.
Alan Davies, planning and environment director said the airport was alarmed to hear that control of air passenger duty could be handed to the Cardiff authorities.
He said: "Airlines at regional airports operate in a very competitive market and are very sensitive to price. They will readily move their operations when the market conditions do not suit their business model.
"We are therefore very concerned about the potential for a distortion of the market between Bristol Airport and Cardiff Airport should air passenger duty be devolved to Wales.
"This could cause severe damage to Bristol Airport's business, and is likely to lead to a loss of services to the detriment of passengers from the South West of England and the local economy. At Bristol Airport we support the proposals for an airport congestion tax which would benefit both Bristol and Cardiff airports."
Devolution of air passenger duty was recommended by the Calman Commission on Scottish devolution, which formed the basis of the Scotland Bill currently going through Parliament.
Budget airline Ryanair has been one of the most outspoken critics of the tax along with easyJet sand the other major airlines.
The Irish airline has threatened to pull out of the UK as a result of the row. Earlier this year the airline turned its back on Belfast City Airport in a row over the level of charges.
Ryanair has closed down many of its routes but has stayed loyal to Bristol.
The UK Treasury is looking at options to change aviation tax. A plan to switch the burden from passengers to planes was recently scrapped.
A UK Treasury spokesman said: "No final decisions have been taken. We're looking at consultation responses and will publish our response in the autumn.
"Devolution could have potentially wide-ranging effects which is why it is important that we gain a full understanding of impacts before any final decisions are taken."[/textarea]
http://www.thisisbristol.co.uk/Fears-ta ... story.html
This would certainly be a serious problem for English airports, especially those situated near airports in Wales and Scotland.
Without wanting to be political it illustrates yet again the unfairness of Scottish and Welsh MPs having a say on English affairs whilst there is no similar reciprocity.
Yet more uncertainty on the expansion of BRS - the judicial review of the planning permission; question marks on significant growth of low-cost airlines (across the board, not just at BRS) and their ability to substantially lift BRS's passenger figures toward 8-10 mppa, and now this.
BRS is not the country's fastest growing airport any more, as the report mistakenly asserts.
