Minister calls for air passenger duty exemption

Stormont's economy minister says the UK government should reconsider a decision to apply air passenger duty (APD) to flights between Londonderry and Dublin.

The service is being funded by the Dublin government who said it would it will launch as soon as is "operationally feasible".

Minister Caoimhe Archibald said she is "deeply disappointed" that the UK government has not made the Derry to Dublin service exempt from APD.

The UK government said it only removes APD on government funded routes that "start and end in the UK".

"We remain open to conversations with the Irish government on this matter," a UK government spokesperson added.

An Irish government spokesperson said APD is "a matter for the UK government".

"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," the spokesperson added.

The Derry to Dublin route is being funded under a Public Service Obligation (PSO), where a government support 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.

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.

Archibald said the Derry to Dublin route will "will unlock economic, business and tourism opportunities in the north west".

Taxing passengers, she said, "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."

Archibald said the UK government had previously gave a commitment to the Derry to Dublin flight in the New Decade New Approach deal.

That 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.

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.