Cardiff Airport

Part of 3. Topical Questions – in the Senedd at 3:20 pm on 21 November 2018.

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Photo of Ken Skates Ken Skates Labour 3:20, 21 November 2018

It's very interesting—Jane Hutt makes a really important point about the role that air passenger duty could play in assisting and making Flybe more competitive, because it's my understanding that something in the region of 80 per cent of Flybe's flights are subject to the double whammy of domestic route APD. Clearly, if that were to be devolved and we could either abandon it or significantly reduce it, then that would assist Flybe and it would also make air services more competitive for passengers.

The UK Government has said that it is open to reviewing the devolution of APD if new evidence comes to light, and I think what we've learnt from Flybe in the last week is that if the removal of APD could be secured through devolution, then, clearly, that would be sufficient evidence to justify the devolution of APD, because it could assist in the company being more competitive. The Welsh Affairs Committee are currently looking at this issue, and the Welsh Government have contributed evidence to that inquiry. Also, we commissioned consultants, Northpoint, to look at the potential outcome of abolishing the tax on all flights. They found that it could raise the number of passengers using Cardiff Airport by more than 650,000 per year, in a very short space of time—in just seven years. That would be an incredible increase in the number of passengers and it would assist the airlines that operate from there, including Flybe.