Management Project

ACKNOWLEDGEMENT

I would like to take this chance for thanking my research facilitator, friends & family for support they provided & their belief in me as well as guidance they provided without which I would have never been able to do this research.

DECLARATION

I, (), would like to declare that all contents included in this thesis/dissertation stand for my individual work without any aid, & this thesis/dissertation has not been submitted for any examination at academic as well as professional level previously. It is also representing my very own views & not essentially which are associated with university (Amin, 2002,, 385).

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ABSTRACT

In this study we try to explore the concept of “Air Passenger Duty and its impact on the Welsh economy.” The budget speech of Chancellor Kenneth Clarke in 1993 was termed as the initiator of the APD tax on United Kingdom's aviation industry. Air Passenger Duty is a tax based on passengers that an aircraft takes and is levied on the airline based on the destination, class of travel and the number of passengers transported. Civil Aviation Authority in a survey estimated that there per year there are 4.3 million passengers that travel to and from Wales. Control of air passenger duty is an essential economic lever that would give the Scottish Parliament the power to boost growth by helping tourism and increasing business connectivity. The core reason of the application of Air Passenger Duty was to reflect the concerns and issues about the environmental impact of aviation, but it is viewed that there is no relation between the estimated costs and the environmental impacts of the aviation. Air Passenger Duty has also been highlighted as the key river of the economic development and tourism that is aimed to deliver overall benefits to devolved regions (Amin, 2002,, 385).

ACKNOWLEDGEMENT1

DECLARATION2

ABSTRACT3

INTRODUCTION6

Background7

Objectives8

LITERATURE REVIEW11

Competitive Advantage or Disadvantage14

News Review15

METHODOLOGY18

Method Design18

DISCUSSION AND ANALYSIS20

Welsh Connectivity and Cardiff Airport21

Political and Social Benefits of Devolving Air Passenger Duty22

Competitive Impacts25

CONCLUSION27

Environmental statement27

Security28

INTRODUCTION

Air Passenger Duty, also called APD, is a tax collected from the operating airlines in the United Kingdom based on the number of passengers carried by the airline. When it was introduced in the aviation industry it was estimated that almost two hundred airlines would be registering themselves to pay for the duty. These two hundred airlines represented about fifty percent of the total airlines operating at that time in uk. Several exemptions have been made part of this tax from time to time. These exemptions are for passengers travelling in small aircrafts especially those travelling to Scotland's inter island services, passengers who are using the airport to transfer to another flight, children who are under two years of age. Add to that positing and on duty air crew in the aircraft, passengers who under a statutory obligation are carried free of charge like people who are being deported and the people who are their escorts, visiting officers of the armed forces on official business and finally pleasure flights for passengers which depart and land on the same airport and ...