Revealed: UK airline industry’s push for ‘ultra low’ prices on domestic flights
A controversial new cut in air passenger tax due next month was passed after the airline industry told the government it would lead to a new era of “ultra low” prices for domestic flights in the UK, with one airline predicting a 31% rise in passengers, industry documents reveal.
The new cut in air passenger duty (APD) for domestic flights was approved by Rishi Sunak when he was chancellor, halving the price to £6.50 from 1 April. The rail industry has warned the move could increase carbon emissions by 27,000 tonnes a year and result in 220,000 fewer rail journeys a year.
Industry submissions obtained under freedom of information laws by openDemocracy reveal how the airlines lobbied for the duty cut to boost air travel in the UK, despite a drive to cut carbon emissions.
Ryanair in its submission to the March 2021 consultation said it would be able to offer more domestic flights at low prices, pointing out that in Spain internal flights could be booked for as little as €5 (£4.42). The low-cost airline has unveiled a number of new UK domestic routes since the cut in duty was announced, including London Stansted to Cornwall.
The airline also rejected a frequent flyer tax which would have progressively increased the fees for each flight taken. It argued it would be “likely only to punish passengers that have an ongoing practical requirement to fly frequently”.
EasyJet said in its submission: “Our analysis shows that if domestic APD is reduced by 50%, this would support an overall 31% increase in domestic volume, to 10.6 million passengers.” BA’s owner, International Airlines Group, told the Treasury that “positive outcomes could include new routes, increased frequency and larger aircraft on existing routes as well as lower fares”.
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