Heathrow airport has cut £15 from charges for domestic fliers, increasing the existing discount by half.
The airport says the discount will save domestic travellers nearly £40 million annually and is part of a set of measures it is taking to promote flights to UK destinations. It claims that when it expands in 2025, the hub will increase its domestic connections from eight to 14, saying it will create a £10 million fund to provide start-up capital for new UK routes.
Heathrow CEO John Holland-Kaye was a major proponent of calls to cut the short-haul APD in the autumn budget, saying help was needed to “supercharge British competitiveness” and “make it cheaper for British businesses to get to London and beyond”. The airport says it has been an “ardent campaigner” for boosting domestic flights.
Announcing the reduction in airport charges, Holland-Kaye said: “Every corner of our country should be able to benefit from the growth and trade that stems from links to the nation’s hub airport.”
In 2017, the airport agreed to reduce its charges for at least 20 years, working with the Scottish government on the Memorandum of Understanding. Keith Brown, cabinet secretary for economy, jobs and fair work, said the further cut was “welcome news for business and leisure passengers”.