A call for views on how aviation policy should be redrawn has reignited the long-running debate about taxation on flights

BUSINESS groups and airlines are calling on the Government to put supporting regional air links at the forefront of its emerging aviation policy.

While some in the industry believe it will be a long time before a comprehensive strategy for the future of air travel is drawn up, the Department for Transport has at least been given plenty to digest following its appeal for responses to a 'scoping document' on developing a sustainable framework for UK aviation.

In its submission to the consultation, which closed last week, Exeter-based airline Flybe challenged the "Londoncentric view" that there are always realistic alternatives to aviation for passengers, and business travellers in particular.

It pointed out that travelling from Exeter to Glasgow takes nearly seven hours by train while an equivalent flight takes an hour and a half.

"Put bluntly, the UK's regions rely on fast, reliable air links. Any reform of transportation policy that limits such services runs the risk of exacerbating existing inequalities and further damaging transport-isolated regions," said Flybe.

As the Echo has previously reported, Exeter International Airport's long-term growth plans could see passenger numbers reach around 3.25 million a year, though the pace of expansion will depend on the recovery of the wider economy.

Flybe argued that "s t re n g t h -ening regional airports provides an excellent opportunity to improve UK aviation, reduce demands on capacity in the South East and improve the overall customer experience of air travellers".

And the airline went on to call for economic incentives to encourage airlines to make better use of regional airports which have spare capacity - including reform of Air Passenger Duty (APD).

"A 'congestion charge' on the busiest London airports, or a lower rate outside of London, could have a transformational impact in terms of capacity in the South East and rebalancing the UK's economy," the company said.

"Flybe has long argued that APD has a disproportionate impact on the regions, including those that rely on crucial lifeline air services. Regional airports and airlines have a lower percentage of business travellers or inbound tourists than the London airports, and have been hit hard by economic downtur n."

Calling on the Government to cut APD by at least 20 per cent on flights from airports outside London, Flybe said: "Regional airports and airlines stand ready to help the Government in its ambition to create 'better not bigger' London airports, with regional airports taking more of the strain. But if a 'one-siz e-fitsall' approach to APD continues, we will simply be unable to deliver on this."

Flybe said it hoped the Treasury's recent decision to reduce APD on international services from Northern Ireland would pave the way for reductions on services from all regions outside London "to support economic growth and help ease capacity concerns in the South East".

But for now there is little sign that this hope will be realised, after economic secretary to the Treasury Chloe Smith told MPs last week: "I cannot promise APD will be cut in the near future." The importance of aviation to the UK economy was also highlighted by the Institute of Directors (IoD) in its response to the consultation. Simon Walker, the organisation's director general, said: "Aviation is vital to UK trade and investment, but we are already falling behind our competitors in Europe. We urge the Government to be bold when drawing up its final framework, and to consider such ideas as a new hub airport in the Thames estuary.

"More important than anything else is that the Government makes its decision quickly. The IoD would like to see concrete proposals for more capacity in specific locations, and when proposals come forward they should be dealt with in no longer than 12 months. We cannot have another debacle like Terminal 5, where it took eight years for a decision to be made." A new survey of 1,245 IoD members found 48 per cent believe airport capacity expansion outside of London and the South East would have a positive impact on the productivity of their business, while only two per cent believe it would have a negative impact on their productivity. In its response to the scoping document, the CBI also stressed the importance of air links to regions like the South West.

It said: "Regional airports are economic hubs - they have the ability to drive economic growth within their regions and beyond, by providing 'point to point' international connectivity for growing business sectors and inward investors.

"For example, 40 per cent of all UK passengers flew via a non-South-East regional airport in 2010. Regional airports also bring direct benefits through job creation in their areas. The contribution from regional airports must be recognised in the new sustainable aviation framework." In the same week the sevenmonth consultation came to an end, Flybe UK's managing director took the airline's call for APD reform to Westminster.

In a speech to the British Air Transport Association (BATA) annual parliamentary reception, Andrew Strong told more than 50 MPs: "Those of us lucky enough to live and work outside of London are fully behind the Government's policy to geographically re-balance the economy and I believe that regional aviation can play a crucial role.

"In 2010, some 86 million people flew from regional airports.

They represent a powerful body of passengers who do not want to travel to London to catch a flight. In short, they are people in your constituencies, winning contracts and keeping regional economies ticking over in these difficult times."

Pointing out that domestic passengers are hardest hit by the current structure of APD, he said: "At present, the domestic passenger suffers what has been coined the 'double-dip' where UK domestic flyers pay APD twice and those flying abroad pay just once. This is because APD only applies to outbound flights from the UK.

"It is frankly scandalous that a return passenger travelling between Glasgow and Belfast City, some 100 miles, pays double the tax of someone flying between Glasgow and Dalaman in Eastern Turkey, a flight of than 2,000 miles." But some observers believe the existing approach to taxing air travel, which has seen APD rise at regular intervals since it was introduced in 1994, could boost Devon's tourism industry, particularly when combined with the introduction of the European Emissions Trading Scheme (ETS) to aviation next year. Richard Carrick, non-executive director of Exeter-based Blue Chip Holidays, said: "Since 2007, APD for flights to Europe has increased by 140 per cent, and by up to 325 per cent for long haul routes. At the same time research from the lobby group A Fair Tax on Flying Alliance shows that numbers of air passenger flying from the UK have fallen by 22 per cent.

"Over this exact same period our bookings have risen by 220 per cent. If the proposed APD increases come in on top of ETS costs, which will inevitably be passed on by the airlines to passengers, then we foresee a further boom in the demand for high-end self-catering properties in the region."