Loganair calls for APD to be quickly removed on flights to Highlands and Islands

Loganair has today called on the Scottish Government to prioritise abolition of Air Passenger Duty (APD) on flights to the Highlands and Islands when it takes over responsibility for the tax in April next year.

Speaking at the Scottish Parliament’s finance and constitution committee, which is taking evidence about the introduction of Scotland’s replacement for APD, Loganair’s managing director Jonathan Hinkles said: “We believe there is a compelling case for the present tax exemption on flights from the Highlands and Islands to be reciprocated to cover departures from Edinburgh, Glasgow and Aberdeen to those very same points.”

Mr Hinkles told the committee that the economic benefits of the resultant lower travel costs would be felt in both the tourism industry and businesses based throughout the Highlands and Islands.

He said a proportion of travel on these routes, such as NHS patient travel, is already funded by Government, so the actual cost to the public purse of exempting these routes will be modest.

Removing the tax would also encourage passenger growth at HIAL airports, generating more income through public charges and thereby reducing HIAL’s reliance on Government subsidy.

He added: “We believe this change should be prioritised in the very first set of measures to be introduced by the Scottish Government.

“Abolishing APD on flights to the islands, well before the eventual abolition of the tax for all air services in Scotland, will make a real and immediate difference to families, tourism and businesses alike.”

The airline announced late last year that it would launch operations under its own name from September 1, 2017, after 24 years operating under franchise agreements with British Airways and latterly Flybe.