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Old 20th Mar 2014, 18:31
  #2475 (permalink)  
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J636
You slightly missed my point if you don't mind me saying so.

What I am suggesting is that instead of APD being used as a phoney 'green tax', it could be better used to manage the variability in supply and demand that we have in the UK system.

The demand at London is partially constrained by APD (but not by much I accept) whilst supply side issues are argued about.

Outside London, APD has a disproportionate effect on constraining growth, particularly long haul.

Airlines don't need to be persuaded to come to London - some do it for prestige rather than profit - but they will be deterred from flying elsewhere in the UK if they can deploy their assets in to alternatives with zero APD as opposed to flying in to the teeth of a taxation system that constrains growth and therefore constrains their probability of making a profit.
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