The UK government was urged to do a better job of promoting aviation as a sector that drives economic growth at today’s Airlines 2024 conference being held in London.
Speaking in an opening session Shai Weiss, Virgin Atlantic chief executive, said he agreed with a Daily Mail headline that described the planned rise in APD as a “tax on your holiday”.
“I do not think in this country the government, Labour or Conservative, have done a good job in identifying aviation as a strategic national asset,” Weiss said.
“This is an island nation. It’s obvious you need a thriving aviation industry to promote growth.”
Weiss said following the increase in APD announced in the last Budget to account for inflation one person flying to the US will pay more than a family of four from Germany.
In a later panel session David Silk director for aviation at the Department for Transport (DfT), said the APD increase will make up for the tax not keeping up with inflation and was a difficult decision the government had to make given the current macro economic situation.
Weiss told delegates that the increase in national insurance contributions will cost Virgin Atlantic £10 million will, money that would have been invested in creating more jobs.
And he also called on the UK government fails to use the tax revenues it derives from aviation to invest in sustainable aviation fuel (SAF) production.
“If we do not get a move on sustainable aviation this year there will be no sustainable aviation fuel produced in this country by the end of this parliament,” he said.
Asked about Virgin Atlantic’s view on the Heathrow third runway, Weiss said it now will only support the expansion if the regulatory regime for the hub changes.
He said Heathrow is the most expensive airport in the world and is requiring 13 times more investment that Stansted to increase passenger capacity by the same proportion.
Grow at the airport “has to be in a sustainable way,” said Weiss, not offering Heathrow a fixed guarantee of increased income without also expectations of improved service levels.
“Let’s take a look under the wing of Heathrow,” Weiss said who claimed a review of the airport’s monopoly position could see reduced fees, reduced taxation and increased competition.
“People keep looking at this, there’s no reason why everything in this country has to be twice as expensive as the rest of the world.”
Weiss said Virgin Atlantic would look at going back to Gatwick, the carrier’s “historic home”, “when the time is right”.
And he said the airline is “finishing its transformation” and is poised to announce it is operating profitably and “with a bit of luck” will report “our first profit for a very long time”.
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