Airport boss says new Government will not support travel industry
03.06.10
The travel industry will not receive the support from the new coalition Government that the Conservative party has given it in the past, and there will be no increase in airport capacity for years to come, Travelmole reports that London City Airport chief executive Richard Gooding told the Institute of Travel & Tourism conference in Benidorm yesterday.
Mr Gooding said the new era of politics would see severe public sector cuts, increased taxes and the prospect looming of high unemployment. This will mean the cabinet will be far less likely to help the travel industry, with the exchequor 'rubbing its hands in anticipation of a four percent increase in taxes from the airlines over the next 4 - 5 years.'
He added that proposals for a per plane levy to replace APD would benefit for the low cost and charter airlines that operate with high load factors, but will hit traditional airlines with lower load factors hard. As for increasing airport capacity in the UK, Mr Gooding predicted nothing would happen to improve the situation and that in 7 - 10 years’ time, as space was squeezed on the UK’s runways, airlines would start to use European hubs more.
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