Wednesday, 11 June 2014

Newcastle Airport's fears over Scottish independence

Scottish independence could cost Newcastle airport thousands of passengers a year, its planning director has claimed.
Speaking to the BBC, Graeme Mason said he was concerned that the Scottish National Party’s pledge to half and then end APD north of the border should it win the devolution vote will tempt English travellers to book flights from Scotland.
He added: “Customers are very mobile; they’ll shop around for the cheapest flight and they’ll travel quite long distances to get those flights.”
And he called upon the British government to be ready to step in should Scotland vote for devolution adding: “There are a number of options open to the government.
“They could abolish APD altogether, or they can match any reductions made by Scotland.
“But if they don’t do this the North of England is going to be at a serious disadvantage to the rest of Scotland.”
However, Ivan Mckee, of Business For Scotland, argued abolishing APD would help the north east, adding: “Scotland is doing what it should be doing; we’re bringing ourselves into line with other countries across Europe who have much lower levels of air passenger duty than we currently have.
“It’s the best thing for the Scottish economy to do, and a growing Scottish economy would be good for the north east of England.”
Meanwhile, aviation minister Robert Goodwill argued a devolved Scotland would not be able to cut APD by as much as it is claiming.
A Treasury spokesman added: “The government has announced it will provide support for regional airports such as Newcastle with the Regional Air Connectivity Fund, which will encourage new routes from regional airports.”

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