An airport boss today said the Scottish Government could choose to level the playing field “very quickly” between Aberdeen and Inverness airports, in an ongoing wrangle over air passenger duty.
Aberdeen International Airport managing director Steve Szalay said he is “amazed” the city’s residents do not feel angrier at the fact Inverness Airport can offer cheaper flights due to not being taxed at the same rate as the city’s flight hub.
Speaking at the Aberdeen and Grampian Chamber of Commerce business breakfast at the city’s Chester Hotel, Mr Szalay said the airport was left in a situation where airlines are “encouraged” to go to Inverness.
Passengers flying from Inverness are exempt from paying air passenger duty (APD), meaning airlines are able to sell cheaper flights without profits being hit.
Meanwhile, those jetting off from Aberdeen must pay the duty when they book their flights, ranging from £13 for a short-haul economy flight up to £468 for business class on a long-haul flight.
Highland Airport is exempt from APD to ensure people living in Shetland and Orkney are not unfairly penalised when, for example, attending hospital appointments on the mainland.
The Scottish Government has had the power to change APD since 2016.
But Mr Szalay said: “I think they can level the playing field very quickly with Inverness. When I say Inverness, I’m only talking about the routes south of Inverness. I’m not talking about the lifeline flights to the Highlands and Islands.
“I’m talking about the shopping trips to London. Why aren’t they taxed at the same rate we are and why aren’t the people of Aberdeen more angry? It just amazes me.
“You’ve got an airport which is cheaper than us because it’s tax-free and so airlines decide to put their flights there.
“Once they’ve decided to put their flights there then they have to sell their tickets.
“Because the demand is over here and not over there they end up getting a lot cheaper deals and that’s the market completely skewed by that decision.”
“I’m talking about the shopping trips to London. Why aren’t they taxed at the same rate we are and why aren’t the people of Aberdeen more angry? It just amazes me.”
APD is set to be replaced with air departure tax – which would apply to all airports – with an implementation date still to be decided.
The Scottish Government said that the long-standing existing exemption must remain in place to protect rural and remote communities, adding they remain “fully committed” to introducing the tax when a solution to the exemption issue is found.
The advantage has already hit Aberdeen Airport after easyJet withdrew flights between the city and Gatwick in February last year but kept its route between Inverness and the London airport.
The airport boss also revealed estimated passenger numbers could be 10% to 20% down in the “coming weeks” in the wake of the coronavirus outbreak.
A Scottish Government spokesperson said: “There is a global climate emergency and all governments, businesses and communities need to increase their action to tackle greenhouse gas emissions.
“We have taken the difficult decision that reducing Air Departure Tax is no longer compatible with our climate responsibilities and acted accordingly.
“Air connectivity is critical for the Highlands and Islands, and our position on the existing exemption is unchanged – it must remain in place to protect remote and rural communities.”
A spokesperson for Inverness Airport declined to comment.
