Willie Walsh the CEO of International Airlines Group (Owners of Iberia and BA) has today explained how Scottish independance could prove a posative move for the aviation industry in Scotland. Mr Walsh has explained that the Scotish white paper on independance has laid out a possible 50% reduction in air passenger duty with further provisions to to scrap the tax all together. So what does this do for our business traveller.
To understand the benefits we must first understand APD, Firstly APD has differant levels of charges depending on the class of travel and the distance you travel. The tax structure is set out on the following website http://abta.com/news-and-views/policy-zone/more/air-passenger-duty if you take a business flight travelling first class from London to Shanghai from the 1st of April 2014 £340 of the ticket price will be tax.
The option of travelling north to either Glasgow or Edniburgh to save the tax on the flight ticket becomes a very attractive option for businesses. Further to this the independant Scottish parlement would have the option to grant favourable planning permissions on expansions at both Glasgow and Edinburgh. So whilst RBS and Standard life have raised concerns about Scottish independance, the avaition industry have taken a posative stance that an independant Scotland could work.