Flybe calls for APD cut

UK domestic airline Flybe has appealed to the government for a 50% cut in air passenger duty at regional airports.

CEO Saad Hammad made the request last week in a letter to Chancellor George Osborne, saying the reduction could be funded by an increase in air tax at busier airports like Heathrow and Gatwick.

He said the issue of APD had become “critical” following the vote to leave the EU.

"We are beginning to see turmoil in our financial markets and our economy under threat of serious and lasting damage," he wrote.

Flybe shares were at 36.0 at Friday’s close, down from a 12-month peak of 73.0 on 10 July last year.

Hammad added: "HM Treasury has yet to comment on the outcome of the discussion paper regarding the options for supporting English regional airports against the impacts of (Scottish) APD devolution.

"HM Treasury has previously argued that it cannot abolish APD given the scale of its contribution to the public finances. 

“In the absence of outright abolition …this could be achieved by lowering the levy at regional airports by 50% in line with what is being planned in Scotland, funding it through an increase at the large, slot-constrained airports in London such as Heathrow and Gatwick."

www.flybe.com

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