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Cardiff Airport's 'unfair boost' if air duty devolved | Cardiff Airport's 'unfair boost' if air duty devolved |
(about 7 hours later) | |
Cardiff Airport would have a "significant advantage" over its rivals if the Welsh government won the power to set air passenger duty, the boss of Bristol Airport has claimed. | |
It would mean the airport could cut or abolish the duty, resulting in potentially cheaper flights. | It would mean the airport could cut or abolish the duty, resulting in potentially cheaper flights. |
The idea has been rejected by the UK government under current plans to devolve financial powers to Wales. | The idea has been rejected by the UK government under current plans to devolve financial powers to Wales. |
However, the four main parties in Wales have called for it to be reconsidered. | |
Bristol Airport chief executive Robert Sinclair claimed any power to cut or abolish the duty would be unfair. | Bristol Airport chief executive Robert Sinclair claimed any power to cut or abolish the duty would be unfair. |
The duty imposes a £13 charge on every passenger flying from the UK on short flights, rising to £97 for the most distant long-haul destinations, with the amounts doubled on tickets in business class. | The duty imposes a £13 charge on every passenger flying from the UK on short flights, rising to £97 for the most distant long-haul destinations, with the amounts doubled on tickets in business class. |
The idea of devolving the duty - recommended by the cross-party Silk Commission - was not included in the Wales Bill currently making its way through Parliament. | The idea of devolving the duty - recommended by the cross-party Silk Commission - was not included in the Wales Bill currently making its way through Parliament. |
But Cardiff Airport chairman Lord Rowe-Beddoe tabled an amendment to the bill in the House of Lords last week calling for the devolution of air passenger duty on all flights. | But Cardiff Airport chairman Lord Rowe-Beddoe tabled an amendment to the bill in the House of Lords last week calling for the devolution of air passenger duty on all flights. |
'Selective subsidies' | 'Selective subsidies' |
Mr Sinclair said he was concerned Cardiff Airport would have an unfair advantage if the Welsh government was given the opportunity to cut or abolish the duty, resulting in cheaper flights. | Mr Sinclair said he was concerned Cardiff Airport would have an unfair advantage if the Welsh government was given the opportunity to cut or abolish the duty, resulting in cheaper flights. |
"The argument that Bristol Airport and Cardiff Airport do not compete is disingenuous," he said. | "The argument that Bristol Airport and Cardiff Airport do not compete is disingenuous," he said. |
"The two airports are less than 100km apart. Bristol is as convenient as Cardiff for many people who live in south east Wales, and we currently serve 25% of the market for air travel for the entire country. | "The two airports are less than 100km apart. Bristol is as convenient as Cardiff for many people who live in south east Wales, and we currently serve 25% of the market for air travel for the entire country. |
"This is not about England versus Wales, it is about the market deciding where airlines wish to operate and passengers voting with their feet. | "This is not about England versus Wales, it is about the market deciding where airlines wish to operate and passengers voting with their feet. |
"Selective subsidies or tax systems which favour one government-owned airport over privately operated competitors are not only unfair, they are a waste of taxpayers' money." | "Selective subsidies or tax systems which favour one government-owned airport over privately operated competitors are not only unfair, they are a waste of taxpayers' money." |
Bristol's elected mayor George Ferguson has told BBC Wales that Cardiff and Bristol should avoid competing in every area in favour of working together as a Severn region, fighting competition from cities in northern England for investment. | Bristol's elected mayor George Ferguson has told BBC Wales that Cardiff and Bristol should avoid competing in every area in favour of working together as a Severn region, fighting competition from cities in northern England for investment. |
Mr Sinclair's comments came as provisional figures showed a 7% drop in year-on-year passenger numbers in September at Cardiff Airport, following an 8% fall in August. | |
The airport's managing director, Debra Barber, said the "slight dip" in passengers was expected because of "airline fleet changes, which are not unusual in the industry". | |
The Conservatives said the airport, bought by the Welsh government last year, would be better off outside the state sector. | |
Shadow transport minister in the assembly Byron Davies said: "The sooner Cardiff Airport is returned to private ownership, to encourage private sector investment to help ensure its future, the better." |
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