The UK Government has announced plans to consult on cutting air passenger duty (APD) on internal UK flights, which will be published in Spring 2021.
The consultation will include options to change the APD treatment for domestic flights, such as reintroducing a return leg exemption or creation of a new lower domestic rate.
In addition to looking at the case for increasing the number of international distance bands, the government is also looking at ways to continue to “decarbonise domestic aviation as part of our ambition to reach net zero, including through mandating the use of sustainable aviation fuels (SAF). All domestic aviation emissions are captured in carbon budgets.”
“The recognition of the detrimental impact of Air Passenger Duty and a commitment to review domestic APD to reduce its impact is very welcome,” commented Airport Operators Association Chief Executive Karen Dee. “Domestic aviation suffered a double-hit in the last year, with the collapse of Flybe and the COVID-19 pandemic, and this offers a glimmer of hope for the future.”
“… the Government’s long-promised Aviation Recovery Package must set out an ambitious strategy to return international and domestic connectivity to the UK nations and regions. APD is one of the key levers that the Government has to boost connectivity recovery but APD reform must be part of an holistic approach. This could include measures such as a regional connectivity start-up fund, Public Service Obligation routes, or waiving of airport charges for key routes as is happening in the Republic of Ireland.”
Responding to the Secretary of State for Transport’s comments on sustainable aviation fuels, Sustainable Aviation Chair Adam Morton said: “The Transport Secretary is absolutely right that sustainable aviation fuels (SAF) will be essential if we are to achieve Jet Zero. SAF technology is available now, can cut carbon by at least 70% compared with fossil fuels and requires no modifications to existing aircraft or refuelling infrastructure. They can also be produced throughout the UK, creating tens of thousands of jobs and generating billions of pounds for our economy in remaining and former industrial regions.
“Establishing the UK’s Jet Zero Council was a big step forward. The necessary private sector investment is poised to invest, get the first SAF facilities up and running, and fuelling flights by the middle of this decade. However, to make this a reality, the Government needs to urgently accelerate its support for this nascent industry. Most importantly, this means introducing a mandate and commercialisation policy to reduce the overall risk of these early projects. With the right action from Government in 2021, the UK can lead the world in both sustainable aviation fuel and deliver Jet Zero.”