UK POLICIES 'DAMAGING AVIATION'

UK Government policies are inflicting ``significant damage on the aviation industry'', the boss of British Airways' parent company said today.

It was ``outrageous'' that the Government would not be publishing an aviation policy until 2013, added Willie Walsh, the chief executive of International Airlines Group, the parent company of BA and of Spanish carrier Iberia.

He added that for David Cameron to put forward the view that cancelling expansion at Heathrow Airport was going to assist global climate change was ``a nonsense''.

Mr Walsh added that Transport Secretary Philip Hammond was not looking at the impact the imposition of the Air Passenger Duty (APD) airport departure tax was having on aviation but looking only at the effect it was having on reducing the economic deficit.

He added that the European Commission's views on the emissions trading scheme were ``completely out of touch with reality''.

Mr Walsh was speaking at a business session at the annual convention of travel organisation Abta in Palma, Majorca.

Mr Walsh said: ``I think the Government is right to tackle the deficit but it has to tackle it and have a vision for the future.

``The Government is trying to undermine the credibility and economic impact of Heathrow. We don't have a policy on aviation. We won't have one until 2013. That's outrageous. These actions by the Government are significantly damaging the aviation industry in general.''

He said increasing APD was going to have ``a huge negative effect''. He added that the UK had lost 7.4 million passengers last year and had had passenger reductions for three years running.

At the same time, other countries have been expanding airports and passenger numbers, Mr Walsh said.

He went on: ``This idea put forward by David Cameron that by cancelling Heathrow (expansion) we were going to do something for global climate change is a nonsense because the rest of the world is growing (their aviation) and benefiting economically.''

It was up to the Government to ``set aside their fixation with the revenue they are trying to raise and try to understand the impact their high taxes are having''.

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