UK could see a £111bn boost if it nurtures airlines

GUY TAYLOR

THE UK could benefit to the tune of £111bn and create over 629,000 local jobs by 2050 if it stays competitive as a hub for airlines to be based here.

Transport consultancy Steer’s report, commissioned by industry body Airlines UK, said propping up Britishbased carriers boosts local employment and supply chains, whilst financing public services through national insurance and VAT.

Each UK-based aircraft directly supports 400 jobs and adds £27m GVA to the economy, as opposed to 100 jobs and £7m GVA when overseas airlines operate UK routes, analysis of data from pre-pandemic years 2018 and 2019, shows.

It comes after major British carriers including Easyjet, Virgin Atlantic and British Airways warned in March that a since confirmed inflation-linked hike to Air Passenger Duty (APD) tax –a duty unique to the UK and which charges based on how far passengers fly –would push up costs for consumers and affect demand.

Concerns surrounding the “punitive” APD hike followed years of jostling over the tax, with the sector warning in 2019 it had impacted the UK’s international connectivity and contributed to “a cost base that hampers the ability of UK airlines to open new viable routes”.

Tim Alderslade, of Airlines UK, said that the research highlighted “the importance of keeping the UK a competitive place to base and grow an airline”.

Responding to the report’s findings, aviation minister Baroness Vere said the UK is “a global leader in aviation connectivity and innovation, supporting jobs and businesses across