Derry Chamber of Commerce has called for the either a reduction or abolition of Air Passenger Duty so that passenger numbers at the city’s airport can increase.
Sinead McLaughlin.
Sinead McLaughlin, Chamber chief executive, said while the drop in passengers was “disappointing,” the Chamber remained “fully committed” to the airport.
Ms McLaughlin said the fall in passenger numbers at the Eglinton airport “was not surprising” as regional airports, both in Britain and globally, had been “disproportionately” hit by the recession.
Pointing out City of Derry Airport had out-performed the vast majority of regional airports in terms of retaining passenger numbers, she said of Northern Ireland’s airports were having “serious difficulty” in competing with those in the Republic because of the large difference in tax rates on air passengers, which will increase with the abolition of the Republic’s Air Travel Tax in April.
Ms McLaughlin said: “Economic studies have repeatedly concluded that a successful city economy must have a good airport, along with strong surface transport links, a respected university and strong skills emerging from schools and third level education and training. For Derry, the airport is even more important because of our weak road links and slow rail connection.
“But we should remember that the reason Derry City Council established and supported the airport is to strengthen the local economy.
“At present, the routes and times of flights fail to maximise the airport’s role in the economy. That is not the fault of the airport, which is dependent on choices made by the airline. Indeed, no business wants to be in a position where it deals with a single customer – but it is extremely difficult in the current economic climate for the airport to attract additional airlines.
“For the local business community, we really need more flights to other regional destinations, such as Dublin, Edinburgh, Manchester and East Midlands.
“It is also important to again have early morning and late evening flight connections with London Stansted to facilitate meetings for our businesses in London and similarly meetings in Derry for our partners in London.
“Ultimately, though, we need a reduction or abolition of Air Passenger Duty to improve the airport’s passenger numbers.”
Ms McLaughlin concluded: “All of Northern Ireland’s airports now have serious difficulty in competing with those in the Republic because of the large difference in tax rates on air passengers, which will increase with the abolition of the Republic’s Air Travel Tax in April.”
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