The boss of EasyJet has said it may base more planes in the UK’s regions as it looks for cheaper travel hubs away from London’s increasingly pricey airports.
Kenton Jarvis, chief executive of the orange-and-white-liveried carrier, told The Mail on Sunday that Britain’s regional airports represented ‘far better value’ than those in London, with Heathrow in particular being criticised for sky-high charges.
‘We will place our aircraft where the airport fees are attractive, where we believe demand will be high and where we can make the most money,’ Jarvis said.
He highlighted that EasyJet had added aircraft at its hubs in Manchester, Liverpool, Bristol and Edinburgh and was planning to open a Newcastle base next year. ‘We’ve added nothing into London,’ Jarvis said. ‘In the UK, it’s the regions that represent far better value.’
Taking flight: EasyJet’s move towards regional airports to save on costs comes as travel industry bosses are lambasting the Government for increasing taxes on the sector to fund
EasyJet’s move towards regional airports to save on costs comes as travel industry bosses are lambasting the Government for increasing taxes on the sector to fund public spending.
Earlier this month, Steve Heapy, chief executive of airline and package holiday group Jet2, accused Labour ministers of treating the sector like a ‘cash cow’ and warned that rising costs would make getaways more expensive for holidaymakers.
A key point of anger is a rise in Air Passenger Duty (APD), a tax charged on flights departing from UK airports. The levy is paid by airlines but is usually passed on to customers through ticket prices.
In her first Budget last year, Rachel Reeves announced that APD for short-haul international flights would rise by £2 to £15 per passenger. This is due to come into force in April next year.
But in her latest Budget, the Chancellor said that from 2027 APD would rise in line with inflation, pushing up costs further.
Meanwhile, airports are set for a multi-million-pound increase in business rates after Reeves announced plans to increase the levy for business buildings valued at more than £500,000.
Bumpy landing: Kenton Jarvis is seeing EasyJet’s share price fluctuate
It means the major London airports – Heathrow and Gatwick – could see their rates bills more than double within four years. The rise threatens to inflame tensions between airports such as Heathrow and airlines, as travel hubs consider raising charges for airlines to offset the higher tax bills. These higher charges are in turn likely to result in higher prices for passengers.
But Jarvis warned that if the price increases were passed on it could result in a big decline in passenger traffic from cost-conscious holidaymakers. He said: ‘We would have to pass it on to the customer, and that would then, I would imagine, crash demand.’
Heathrow is already struggling to convince airlines to pay more to help fund an expansion that it says will allow it to handle 10 million more passengers a year by 2031.
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