Tuesday, 27 September 2011

BFS<>EWR to escape APD?

Over in Northern Ireland, there is considerable debate going on regarding the United (Continental operated) service between Belfast International and Newark International Airport.

The service operates daily with a Boeing 757-200

However, there are issues, least of which is the Air Passenger Duty (APD) of £60 if you're travelling Economy, £120 if you're going in BusinessFirst.  However, just across the border is Ireland and Dublin Airport which has a grand departure tax of €3.

Yes, €3. 

What seems to have escaped the Goverment is that one can hop over the border to avoid this tax and start their journey there. Even factoring in for a hotel or bus travel, you'll be £40 up (and lord knows how much if you're driving)



United/Continental claims this is killing them at a cost of £3.2m a year, and have been quietly threatening to kill this route off as it just doesn't make financial sense.

Northern Ireland sees this route as as vital for promoting trade and inward investment - so something has to be done

Northern Ireland's First Minister - Peter Robinson - has informed the assembly that a favourable announcement from the chancellor on Air Passenger Duty (APD) is expected later, aiming to remove or reduce the tax on this route, whilst maintaining the fees for Short-Haul (Europe/UK Domestic) APD

Whilst this is good news for United/Continental, you can bet your bottom coin that all the other airlines who serve the airport of Northern Ireland will be crying out for this reduction in APD soon.

Expect long term fireworks.


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