Chief executives from Flybe, Thomas Cook, Thomson Airways and Virgin Atlantic all expressed their support for a 50% reduction in ADT in a letter to MSP Bruce Crawford, chair of the Scottish parliament finance committee, yesterday (February 28).
Their backing came as Scottish finance minister Derek Mackay appeared in front of the committee to outline to MSPs how and when a cutting of ADT would be brought into force.
The Air Departure Tax Bill was introduced in Holyrood back in December to establish the tax which will replace Air Passenger Duty (APD) in Scotland.
The Scottish government is due to take control of the air fare tax from April 2018.
The SNP said they believed the legislation could help pave the way to deliver a 50% cut in ADT by the end of the current parliament.
In the letter, airline bosses explained their reasons for supporting what they branded “more competitive aviation taxes” in Scotland.
In excerpts, bosses said that APD in its current form was “damaging” and placed Scotland at a "disadvantage” to attract trade and investment.
“A 50% reduction in the rate of the new ADT for all routes would improve Scotland’s world standing in terms of both short and long-haul travel,” the letter said.
The letter also stated: “This lower passenger tax would certainly make Scotland a more attractive place for airlines to add capacity, delivering new routes and more services.
“In a post-Brexit world we believe positive action on aviation taxation would send a clear message that Scotland is open for business and ready to welcome the world.
"This would represent a massive boost to the Scottish tourism industry and airlines are ready and keen to respond with new routes and substantial increased investment.”
Tim Alderslade, chief executive of industry body Airlines UK, added: “At a time when competitor nations are busy reducing or abolishing their own versions of the Air Departure Tax – including Ireland, which has seen a surge in new routes and passengers since it took action to make its airports more competitive – it makes little sense for Scotland to continue to put itself at a disadvantage by levying such sky-high taxes on aviation.
“The airline sector has been clear that taking action on ADT will make a big difference to businesses and families – and provide a welcome boost to the Scottish tourism industry. Our members would see Scotland – a key market for them already – as an even more attractive destination to add capacity and put on new routes.
“Importantly, this could also be done in a way that is environmentally sustainable – thanks to the huge and continuing investment airlines are making in cleaner, quieter aircraft and the ambitious carbon reduction targets the industry – encompassing airlines, airports, manufacturers and others – has signed up to.”
