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Budget 2016: No reprieve for airlines on passenger duty

The airline industry did not get the reform of air passenger duty it had been hoping for
March 16, 2016

The airline industry was not given the tax break it was hoping for via a reform of air passenger duty (APD).

One of the most vocal on the issue has been Flybe (FLYB) given many of its customers pay the levy twice due to the domestic bias of the company.

Saad Hammad, the airline's chief executive, said the Budget was "yet another missed opportunity" for a reformation or abolition of the tax which he claims is "unfair and discriminatory" and that it has "stifled regional economic growth for far too long".

“UK APD is the highest aviation tax in Europe and one of the highest in the world, which penalises disproportionately domestic UK travellers on a per mile basis compared to European short-haul and long-haul," he said.

"It is surely high time the UK Government listened to the needs of regional passengers and took positive steps to reforming or abolishing this tax without further delay."

Mr Hammad urged Mr Osborne to cut the levy in half for regional airports, as has happened in Scotland, and introduce a higher levy at congested airports.