Economics of Place

The benefits of reducing Air Passenger Duty on domestic routes

The benefits of reducing Air Passenger Duty on domestic routes

Heathrow has commissioned Frontier Economics and Quod to consider the potential impact of a reduction in Air Passenger Duty (APD) on domestic UK routes. We have considered two scenarios: 

  1. Completely removing APD on domestic routes

  2. A more conservative 50% reduction in APD, which mirrors the Scottish Government’s stated proposals for APD in 2018.

The benefits of reducing Air Passenger Duty on domestic routes