Airport.

[Banker]

IOMG APD to blame for flights being axed to Bristol & Belfast 

https://manx.news/high-air-duty-sees-off-some-easyjet-iom-routes/

[Ringy Rose]

11 minutes ago, Banker said:

IOMG APD to blame for flights being axed to Bristol & Belfast 

https://manx.news/high-air-duty-sees-off-some-easyjet-iom-routes/

If APD was abolished it would save precisely £0.00 on air fares and that £3m revenue would just go to easyJet’s shareholders.

It’s also worth noting that the UK have only cut APD on domestic routes. Fly internationally and it’s the same as here. I’m surprised Labour haven’t put domestic APD back to where it was, I suspect they will do soon.

It’s funny how Cobb blames APD at £13 and not the £40 per person departure fee charged by Ronaldsway.

FWIW both fees are about right. Airports aren’t cheap to run and due to our size we don’t have the alternative revenue streams- bars, car parking, etc- that even airports like Liverpool have.

Edited 15 hours ago by Ringy Rose

[Banker]

19 minutes ago, Ringy Rose said:

If APD was abolished it would save precisely £0.00 on air fares and that £3m revenue would just go to easyJet’s shareholders.

It’s also worth noting that the UK have only cut APD on domestic routes. Fly internationally and it’s the same as here. I’m surprised Labour haven’t put domestic APD back to where it was, I suspect they will do soon.

It’s funny how Cobb blames APD at £13 and not the £40 per person departure fee charged by Ronaldsway.

FWIW both fees are about right. Airports aren’t cheap to run and due to our size we don’t have the alternative revenue streams- bars, car parking, etc- that even airports like Liverpool have.

Passengers pay the APD so it should make fares cheaper, Channel Islands don’t have large revenue streams either and there’s is zero with jersey having a significant amount of flights from multiple airlines 

[Andy Onchan]

17 minutes ago, Ringy Rose said:

If APD was abolished it would save precisely £0.00 on air fares and that £3m revenue would just go to easyJet’s shareholders.

It’s also worth noting that the UK have only cut APD on domestic routes. Fly internationally and it’s the same as here. I’m surprised Labour haven’t put domestic APD back to where it was, I suspect they will do soon.

It’s funny how Cobb blames APD at £13 and not the £40 per person departure fee charged by Ronaldsway.

FWIW both fees are about right. Airports aren’t cheap to run and due to our size we don’t have the alternative revenue streams- bars, car parking, etc- that even airports like Liverpool have.

I suspect the APD goes straight into the general government kitty and not spent directly on the airport. If it was segregated then by now we might have at least paid a deposit on improved ILS equipment & software.

[Ringy Rose]

Just now, Banker said:

Passengers pay the APD so it should make fares cheaper, Channel Islands don’t have large revenue streams either and there’s is zero with jersey having a significant amount of flights from multiple airlines 

Jersey has a large revenue stream from retail due to the fact it is duty free for travel to the UK. Which is why their departure fee is about £10-£15 not £30-£40.

Passengers do pay the APD, but it is included in the price you see when you’re searching. Remove APD and the price will stay exactly where it was, it’s just that £13 will go to easyJet and not to the government.

We’ve seen this so many times. When VAT was abolished on tampons the price reduction was £0.00, the manufacturers just added the 5% to their bottom line.

[Ringy Rose]

17 minutes ago, Andy Onchan said:

I suspect the APD goes straight into the general government kitty and not spent directly on the airport

APD is general taxation.

The departure fee per passenger is charged by the airport and is spent at the airport.

It seems the departure fee is £30 per person not £40, to correct my earlier post.

Loganair and BA break it all down when you select a ticket. EasyJet show the APD but they don’t list the departure fee, it’s just in the fare- I think this is so EasyJet can hide where they have got sweet deals from airports.

It’s also worth noting that if you book a through ticket with BA or Aer Lingus somewhere you only pay APD once. If you book separate tickets through the UK you pay it twice, once to leave here at the normal rate and once to leave the UK at whatever rate based on where you’re going. EasyJet Worldwide isn’t a through ticket, it’s an insurance policy.

You don’t pay APD in Ireland so especially long haul business class travellers can save some money by booking separate tickets through Dublin.

 

 

Edited 14 hours ago by Ringy Rose

[Roger Mexico]

21 hours ago, Andy Onchan said:

As I said earlier in the thread, the financial payment for staying open for an airline that consistently abuses our ATC opening hours is an insult. Ramp those costs up and see what happens. If they fck off, then so be it. At least then our government executive and elected might focus on quality services.  

It would be interesting to compare it with what other airports charge.  But that won't be the only cost to easyJet, they'll also have to pay Menzies for extending their services.  Still cheaper than hotel rooms I suppose.

[Andy Onchan]

51 minutes ago, Ringy Rose said:

APD is general taxation.

The departure fee per passenger is charged by the airport and is spent at the airport.

It seems the departure fee is £30 per person not £40, to correct my earlier post.

Loganair and BA break it all down when you select a ticket. EasyJet show the APD but they don’t list the departure fee, it’s just in the fare- I think this is so EasyJet can hide where they have got sweet deals from airports.

It’s also worth noting that if you book a through ticket with BA or Aer Lingus somewhere you only pay APD once. If you book separate tickets through the UK you pay it twice, once to leave here at the normal rate and once to leave the UK at whatever rate based on where you’re going. EasyJet Worldwide isn’t a through ticket, it’s an insurance policy.

You don’t pay APD in Ireland so especially long haul business class travellers can save some money by booking separate tickets through Dublin.

Thanks for the info.

Departure fee - according to declared airport numbers the moving annual total for August 24 (divided by 2, to assume departures only) (https://www.airport.im/media/d32dlemo/august-2024-airport-figures.pdf) these fees should generate approx £10million/pa or approx £27k/day for the airport. Is that happening? Is the airport actually getting that money? Or is Treasury hanging on to it?

[Andy Onchan]

2 minutes ago, Roger Mexico said:

It would be interesting to compare it with what other airports charge.  But that won't be the only cost to easyJet, they'll also have to pay Menzies for extending their services.  Still cheaper than hotel rooms I suppose.

EZY would have screwed Menzies to the floor on terms, of that you can be sure.

[Roger Mexico]

1 hour ago, Ringy Rose said:

It seems the departure fee is £30 per person not £40, to correct my earlier post.

Actually it's £27 for 2024-25, so your £40 is correct if you include the APD.   Agree on your other points.

1 hour ago, Andy Onchan said:

I suspect the APD goes straight into the general government kitty and not spent directly on the airport. If it was segregated then by now we might have at least paid a deposit on improved ILS equipment & software.

No need for suspicion, that's what has always happened.  According to the WQ answer to Wannenburgh in May 2023:

APD is forecast to generate £3.6m in 2023/24. Reducing this by half would mean a loss of £1.7m of Government revenue at a time of increasing pressure on Government finances

Though in the past capital spending on the airport has often been part-justified by this Treasury revenue.

[Non-Believer]

Sounds very much like Cobb's departing swipe at Govt/Treasury, he's nothing to lose at this point. No guesses needed as to the areas where the revenue will be being directed and it won't be the airport itself. 

Then again, passenger and fees such as landing have always been a contentious issue for those brave enough to put their head above the parapet. Back in the days of Manx Airlines, Terry Liddiard regularly complained about Ronaldsway landing fees being equal to or higher than Heathrow at the time.

[Banker]

23 minutes ago, Non-Believer said:

Sounds very much like Cobb's departing swipe at Govt/Treasury, he's nothing to lose at this point. No guesses needed as to the areas where the revenue will be being directed and it won't be the airport itself. 

Then again, passenger and fees such as landing have always been a contentious issue for those brave enough to put their head above the parapet. Back in the days of Manx Airlines, Terry Liddiard regularly complained about Ronaldsway landing fees being equal to or higher than Heathrow at the time.

Yes I’m not sure why some are supportive of highest APD in British Isles but it’s obviously a reason for easyJet scrapping 2 routes for at least 6 months, Belfast permanently possibly.

Over 100 comments all negative about this on 3 Fm Facebook with Rob looking into it!

[Two-lane]

What is the reason for Ronaldsway to have a high APD compared to other airports?

Do other airports keep APD charges down by selling car parking, perfumes and alcohol, or does Ronaldsway just waste the money?

Comparative figures would be good, but I doubt they are available.

[Omobono]

23 minutes ago, Two-lane said:

What is the reason for Ronaldsway to have a high APD compared to other airports?

Do other airports keep APD charges down by selling car parking, perfumes and alcohol, or does Ronaldsway just waste the money?

Comparative figures would be good, but I doubt they are available.

perhaps all the money is going to RINGO  , if there not running  a car park and collecting money themselves  then why are people still employed at the airport for this function  same  could be said about a lot of things in government !  too many managers   ,  with little of nothing to do all day 

[manxman8180]

6 hours ago, Andy Onchan said:

Thanks for the info.

Departure fee - according to declared airport numbers the moving annual total for August 24 (divided by 2, to assume departures only) (https://www.airport.im/media/d32dlemo/august-2024-airport-figures.pdf) these fees should generate approx £10million/pa or approx £27k/day for the airport. Is that happening? Is the airport actually getting that money? Or is Treasury hanging on to it?

It won't be at that level though - as there is no way easyJet or Loganair will be paying the full rate.  It will be (deeply I suspect) discounted - not even double figures in cash terms per pax (setting aside APD).

Removing / reducing APD could definitely have some form of impact - either in reducing the initial lead in fare, or increasing yield for airlines.  Either (or more likely a combination of both) could have some role to play in encouraging / sustaining marginal routes.