Gediminas Ziemelis, Chairman of the international aviation services company Avia Solutions Group, has issued a stark warning against the proposed increase in UK Air Passenger Duty (APD) outlined in the 2024 Budget.
Ziemelis told LARA that Chancellor Rachel Reeves’ plan to raise the tax would have detrimental effects on the UK aviation industry, impacting jobs, tourism, and the broader economy.
“Increasing APD was a misguided move,” he said, pointing to the negative consequences of similar tax hikes in other countries, such as Germany, where Ryanair reduced its capacity by 12% for summer 2025 in response to raised duty.
He highlighted the risk of airlines shifting operations away from the UK to avoid higher costs, potentially leading to job losses and reduced connectivity.
“While APD was originally introduced in 1994 to address the environmental impact of air travel and bolster national revenue, increasing it would have had the opposite effect – driving away investment, reducing connectivity, and stifling growth across the UK’s regions. Labour’s approach needed reconsideration if it hoped to protect jobs and promote sustainable, long-term prosperity,” he told LARA.
Instead of raising APD, Ziemelis urged the government to reconsider its approach and prioritise policies that supported the aviation industry’s sustainable growth, protected jobs and promoted regional economic development.
“Raising APD may seem like a quick fix, but the potential damage to the aviation sector, regional economies, and even environmental efforts would outweigh the benefits. The aviation industry plays a vital role in connecting the UK to the world, and its recovery should not be jeopardised by well-intentioned but misapplied policies,” said Ziemelis.
Avia Solutions Group Chairman, Gediminas Ziemelis.
