Major Boost for Northern Ireland’s Long-Haul Ambitions

A ruling by the Northern Ireland Assembly to cut the rate of Air Passenger Duty (APD) for long-haul flights out of Belfast to zero from next year will help maintain the existing air service of United Airlines between Belfast International and Newark Liberty International and could attract additional links to the city.

When the UK Department for Transport (DfT) cut the APD rates paid on long-haul flights out of Northern Ireland to the same level as short-haul services, it also announced plans to devolve powers on the setting of long-haul APD charges from Westminster to the Northern Ireland Executive. This process was recently completed and the Northern Ireland Executive has wasted no time in abolishing the charge from January next year.

The hefty rate of APD had been a major discussion point in maintaining the services of United Airlines at Belfast International Airport. With passengers flying from Dublin in the Republic of Ireland only having to pay a small charge, many travellers were choosing to travel by land to the Irish capital and then take long-haul services from there to avoid paying UK APD. This has led United Airlines to review its services to Belfast on a number of occasions.

The route was introduced by Continental Airlines in May 2005 and represented the first non-stop scheduled services to the USA from Belfast since American Trans Air operated flights to New York during the mid-1990s. The flight is operated on an up to daily frequency using a Boeing 757-200.

The Northern Ireland Finance Minister Sammy Wilson has welcomed the abolishment of Air Passenger Duty on long-haul flights from Northern Ireland from January 2013. “Direct airlinks facilitate local firms in doing business with customers outside the region, they are also vital for the local tourism industry and in attracting Foreign Direct Investment to Northern Ireland – both key to growing and rebalancing our economy,” he said.

“Abolishing Air Passenger Duty on long haul flights will help to protect and improve our international air access and ensure the competitiveness of our airports. It will enable Northern Ireland to remain an attractive place to do business and I also hope that it will help secure flights to new long haul destinations,” he added.

The decision has obviously been warmly welcomed by the management at Belfast International Airport who are now in a much stronger position when discussing new air service development with airlines across the globe. “Given the increasing differential with regard to direct long haul Air Passenger Duty levels between the UK and Republic of Ireland, and the very specific problems which this caused for Northern Ireland connectivity, we are grateful to the Northern Ireland Executive and HM Treasury that decisive action has been taken,” said John Doran, Managing Director, Belfast International Airport.

“As the International Airport we now look forward with renewed vigour to building upon the success of our direct US air links, as well as reaching out into key additional long haul markets in Canada and the eastern hemisphere, in partnership with the investment and tourism authorities,” he added.

In the table below we highlight O&D passenger demand between Belfast and Newark Liberty International Airport over the past five years. The data shows a declining market, due in a big part to the increasing rate of APD from the UK.