The cost of UK domestic flights could be reduced after Brexit as the government review Air Passenger Duty.
Current EU rules prevent the return leg of domestic flights being exempt from the aviation levy. Short-haul domestic flights incur a £13 levy.
But as Britain prepares to withdraw from the EU the government has indicated this could change amid a shake-up of APD.
Although anti-APD campaigners have urged the government to do more to stimulate air travel to the UK post Brexit the move was welcomed.
Business travel group the GTMC welcomed news that the government could cut cost of domestic flights.
Adrian Parkes, GTMC chief executive, said: “This is positive news for businesses, airlines and the UK economy.
“We would urge the government to put words into positive action by implementing a significant reduction in APD which for too long has stifled business travel and economic growth.
“The announcement of a £1.7 billion Transforming Cities Fund in the Chancellor’s Autumn statement and a pledge to invest in the development of regional infrastructure to support businesses outside of London and the South East was encouraging.
“A cut in APD for domestic air travel is another positive step forward in enabling balanced economic growth across the UK.
“The next important step would be to review the increase in rates to premium economy and business class long-haul flights.
“APD presents a very real barrier to growth and a government review is long overdue.”
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