No justification for cutting APD to save Flybe, says AEF

14th January, 2020

In response to reports that the Government is considering cutting APD on all domestic flights in order to save Flybe from having to cease operations, AEF Deputy Director Cait Hewitt said:

With aviation growth posing a threat to the UK’s ability to meet its net zero climate target, there can be no justification for a tax cut designed to boost sales by a failing airline. 

The only way the proposed APD cut could save Flybe would be by attracting new customers – encouraging people to make trips they wouldn’t otherwise have made, or incentivising them to switch from rail or coach options and onto aircraft – moving us even further away from delivering the sustainable transport policy the Government says it’s committed to.

Flying is already exempt from fuel tax and VAT. With its emissions set to grow and no green technology solutions available quickly or cheaply enough, there’s a strong case for the Government increasing taxes on flying, to help fund measures to tackle its environmental impacts.