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Further to HM Treasury’s Consultation on the amendments proposed to Aviation Duty, the owners of Liverpool John Lennon Airport (LJLA), the Peel Airports Group have submitted their response supporting the view that whilst it is important that mechanisms are put in place to ensure the aviation industry develops in a way that is environmentally and economically sustainable, it however believes it is equally important that measures for aviation are proportionate to its impact on climate change.

Regional airports such as LJLA, have been major contributors to their respected regional economies and key economic drivers, however a CAA Report published in January 2008 reinforced the Airport’s view that the negative impact on the industry following the recent doubling of the existing Air Passenger Duty is one of the key factors causing the slowdown in the UK air traffic growth. This slow down is bad for UK plc, having been offset by increased traffic by airlines operating elsewhere in Europe, who without such taxation can subsequently run more profitable services.

The proposed Aviation duty offers no incentives to airlines to use modern environmentally friendly aircraft and Peel Airports have real concerns that this increased tax could potentially have a deeper negative effect on airlines serving regional airports with the viability of certain routes being questioned. Some of the most price sensitive markets operate from regional airports and will therefore be most affected by this proposed increase in taxation.
Peel Airports would also like to see more transparency in how the contributions from the aviation sector in the UK are actually being spent by the Government on tackling the environmental issues.

The company shares the view of other UK airports that if the proposed Aviation Duty goes ahead then once again the UK aviation sector will be disadvantaged compared to the rest of the EU market which has no such tax regime.

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