Partner Article

Regional Business suffering due to poor air links

Air passenger duty is having a detrimental effect on the region’s connections with international business markets, according to the North East Chamber of Commerce (NECC).

It is believed that many airports are dissuaded from introducing new connections to the region by the duty, which has a greater impact on flights to smaller airports which carry fewer passengers and have less elastic demand than major hubs.

The NECC also claims that regional airports, such as Newcastle, facilitate international business links that are key to rebalancing the UK economy.

The NECC are now calling for a reform of air passenger duty, with a lower rate for less congested regional airports to free up the more congested southern airports whilst unlocking the North East’s economic capacity.

James Ramsbotham, chief executive of the NECC said: “The South East is home to the UK’s most heavily congested airports. Reforms to air passenger duty should penalise congestion and incentivise the use of regional airports where spare capacity exists. “

“This approach would also help to rebalance greater economic activity in parts of the UK other than the South East.”

This was posted in Bdaily's Members' News section by Ruth Mitchell .