Regional Airports

Debate between Mike Kane and Lord Dodds of Duncairn

Tuesday 15th July 2014 Westminster Hall

[Mike Kane]

I am grateful for that contribution. We must continue to consider APD. We live in a competitive world and we want a competitive market, but we also want a level playing field with competing airports across Europe, such as those in Spain, particularly Barcelona. A temporary APD holiday would be in line with the Government objectives of making best use of existing capacity and promoting links to emerging economies and economic growth near regional airports.

[Mr Nigel Dodds (Belfast North) (DUP)]

I commend the hon. Gentleman on securing this important debate. He may be aware that in Northern Ireland, international flights are exempt from APD, because it is now a devolved matter for the Northern Ireland Executive. I heartily endorse what he and the Transport Committee have suggested. Although we have devolved power, as a result of intense competition from Dublin international airport just down the road, which has zero APD, it is nevertheless a major cost to the Northern Ireland block grant, meaning that the money cannot be spent in other important areas such as health, education and so on. I agree totally with what he says about the need for action at a UK level.

[Mike Kane]

I look forward to flying from Manchester to Belfast on Friday morning to represent Wythenshawe in Falcarragh over the weekend. However, we could not secure a route from Manchester to Londonderry airport. We need further connectivity between UK airports.

Clearly, strict rules would be needed to prevent airlines from churning from one airport to another to create new routes. The route would need to introduce net additional capacity from the UK. The Treasury could also review the impact of APD on the economy and on connectivity, as there is anecdotal evidence to suggest that high rates have damaged connectivity. To give just one recent example, AirAsia ceased operations in the UK, citing APD levels as the primary cause.

There is also a case for greater liberalisation of access to UK airports, particularly regional airports. Given that the UK long-haul carriers have consolidated their services at Heathrow, airports elsewhere must rely predominantly on overseas carriers to provide direct scheduled links to long-haul destinations. The Government have gone some way towards further liberalising foreign access; the last aviation framework document said that access would be granted, even without reciprocity, on a case-by-case basis. However, where there are concerns about issues such as state aid, access may still be refused and UK airlines have the right to object. But if UK airlines are not interested in serving points directly from airports such as Manchester, the Government should be prepared to open the market to airlines that are.

Aviation is vital to Britain’s competitiveness and future economic success. It is undoubtedly a key driver of our regional economies and a catalyst for the UK’s economic growth and jobs. Through mechanisms such as APD and the regional airport connectivity fund, the Government should continue to look at how they can maximise support for our regional airports, which would increase connectivity, remove pressure from congested airports in the south-east, and help to create additional capacity for jobs and growth throughout the UK. Supporting regional airports is a win-win situation not only for our regional economies but for the UK as a whole.