Stormont's economy minister has said the UK government should reconsider its decision to apply air passenger duty (APD) to flights between Londonderry and Dublin. Caoimhe Archibald said she is “deeply disappointed” that the route will not be exempt from the tax.
The service is being funded by the Dublin government, which said it will launch as soon as is “operationally feasible”. The UK government said it only removes APD on government funded routes that “start and end in the UK”, while adding that it remains open to talks with the Irish government.
“deeply disappointed”
“start and end in the UK”
“We remain open to conversations with the Irish government on this matter,”
“It is anticipated that a Request for Tenders will be published shortly, with a view to a contract being awarded this year and services commencing as soon as operationally feasible by the successful carrier,”
An Irish government spokesperson said APD is “a matter for the UK government”. The spokesperson also said the tender process is expected to begin shortly, with a contract due to be awarded this year and services starting as soon as possible after that.
“a matter for the UK government”
The Derry to Dublin route is being funded under a Public Service Obligation (PSO), where a government supports flights which would not otherwise be commercially viable. Currently, the London government provides financial backing for the Derry to London PSO route, a service where APD is not added.
## What is Air Passenger Duty?
Air Passenger Duty is a tax on flights which depart from the UK, paid by aircraft operators. The cost is usually passed onto passengers with their ticket price.
It does not apply to passengers under 16 on economy flights. Different amounts are charged dependent on the distance of the flight. It was first introduced in 1994.
The government's spending watchdog, the Office for Budget Responsibility, forecast the tax to bring in £4.6bn for the Treasury in the year 2025-2026.
A previous service between City of Derry Airport and Dublin was axed in 2011
Archibald said the Derry to Dublin route will “will unlock economic, business and tourism opportunities in the north west”. She said taxing passengers “runs entirely contrary to the objective of ensuring the sustainability of the route because of its regional significance”.
“will unlock economic, business and tourism opportunities in the north west”
“runs entirely contrary to the objective of ensuring the sustainability of the route because of its regional significance”
The minister added: “I will therefore continue to engage with the British Government and urge it to reconsider this position, do the right thing and exempt this important air link from APD.” She said the UK government had previously gave a commitment to the Derry to Dublin flight in the New Decade New Approach deal.
“I will therefore continue to engage with the British Government and urge it to reconsider this position, do the right thing and exempt this important air link from APD.”
The New Decade New Approach deal, signed in 2020, led to the restoration of the Stormont executive after a three-year collapse. A daily service between City of Derry Airport and Dublin, funded by the Irish government, was withdrawn in 2011.
“the UK government had previously gave a commitment to the Derry to Dublin flight in the New Decade New Approach deal.”
Earlier this year, Ireland's transport minister Darragh O'Brien told the Dáil (Irish Parliament) the current timeline is for the service to resume in October.
What is Air Passenger Duty?
Air Passenger Duty is a tax on flights which depart from the UK, paid by aircraft operators. The cost is usually passed onto passengers with their ticket price.
It does not apply to passengers under 16 on economy flights.
Different amounts are charged dependent on the distance of the flight. It was first introduced in 1994.
The government's spending watchdog, the Office for Budget Responsibility, forecast the tax to bring in £4.6bn for the Treasury in the year 2025-2026.
A previous service between City of Derry Airport and Dublin was axed in 2011
