(Adds easyJet comment, background)
By Sarah Young
LONDON, March 10 (Reuters) - Britain wants to cut air
passenger duty on domestic flights to boost internal links and
will launch a consultation this spring, giving a glimmer of hope
to the stricken airline industry.
The boss of UK-based easyJet welcomed the news but
said action was needed fast. Airlines, airports and holiday
companies are desperate for a summer recovery in travel after a
year of minimal revenues.
But a consultation on internal air passenger duty (APD)
could last months.
"A reduced domestic rate would be a positive step in
supporting the UK’s air connections," easyJet Chief Executive
Johan Lundgren said. "The government should act quickly to take
this opportunity."
The new consultation will consider options such as the
introduction of a return leg exemption, creating a new lower
domestic level and increasing the number of international
distance bands, the transport ministry said in a statement.
In 2019, APD raised an estimated 3.7 billion pounds for the
government. Airlines have long opposed the tax, which they say
is the highest European aviation tax by a long way and they want
a suspension across the board, not just an internal cut.
In a connectivity review of the union, the government
promised to improve rail, road, sea and air links to boost parts
of the country that feel left behind.
APD is charged per passenger flying from a British airport
to both domestic and international destinations in bands that
take account of distance and class of travel.
Transport minister Grant Shapps said earlier on Wednesday
that cutting APD on domestic flights would not adversely affect
Britain's climate change goals because there would be increasing
use of sustainable fuels.
Greenpeace said it was nonsensical.
The government is due to publish more information on April
12 about whether people will be able to travel abroad this
summer. It has said holidays will not be allowed before May 17.
Shapps also said that he was "hopeful" that travel could be
given the go-ahead.
(Reporting by Costas Pitas and Sarah Young
Editing by Peter Graff and Steve Orlofsky)
easyJet (EZJ)