Tax row could threaten airport jobs
IT COULD soon to be cheaper to fly from Cardiff Airport than Bristol, if the Government pushes ahead with controversial tax plans.
Bosses at Bristol Airport believe jobs could be in danger after a report this month recommended the Government changed its aviation tax policy.
The Silk Commission has produced a report for the Government recommending the Welsh Assembly should decide the level of aviation tax on flights from Cardiff Airport.
But Robert Sinclair, chief executive officer for Bristol Airport, said it could have a damaging effect on the South West if the Welsh Assembly set lower tax rates for Cardiff’s passengers, than elsewhere in the UK.
He said: “Politicians in London and Cardiff should be under no illusions that, if implemented, this recommendation would jeopardise jobs, connectivity and growth in the South West.
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“Recent research by HM Revenue & Customs clearly demonstrated how a reduction in air passenger duty in Wales could have a complex, dramatic and damaging effect on the distribution of passengers between airports.
“There is no economic justification for distorting the market in this way, and there would only be one winner - the Spanish owners of Cardiff Airport.”
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