IATA: UK must increase capacity, cut taxes and visa restrictions

The UK risks losing up to 120,000 jobs from the aviation sector over the next two decades if it does not improve competitiveness, according to a new IATA report. Lack of airport infrastructure in southeast England, the world’s highest rate of passenger charges and taxes, together with a relatively restrictive visa regime are the main negative factors that could impinge on the country’s aviation sector, which currently accounts for 1.6 million jobs and contributes GBP89b annually to the UK’s economy, or 4.5% of GDP, the report stated. At a July 9 IATA briefing in London on the report—“The UK Competitiveness Index and Value of Aviation”—IATA regional VP-Europe Rafael Schvartzman and chief economist Brian Pearce said the UK must do more to maintain or improve its position in the global aviation sector, especially given the need to increase overseas trade links after the country leaves the European Union, scheduled for Oct. 31 this year. The IATA report noted the UK is second, only behind the Netherlands, in terms of low runway infrastructure capacity in a group of 17 European nations. Heathrow operates at 99% capacity and its long-awaited third runway is scheduled to be operational by the middle of the next decade. It still faces likely legal challenges from environmental groups. The UK is also at the bottom of a group of 17 nations in terms of airport and passenger taxes and charges. <br/>