The decision to cut air passenger duty for long-haul flights from Belfast to the U.S. has been welcomed by politicians and business leaders. Air passenger duty (APD) currently adds £60 to an economy fare and £120
to a business ticket.
Under new proposals, the direct long-haul rate of APD will fall to the lower short-haul rate of £12 per passenger in economy and £24 for business and first class passengers.
The cost of the tax had threatened to kill off the daily service between Belfast and New York which is operated by Continental Airlines as it was substantially higher than the carrier's daily flight from Dublin to New York which
stands at just €3. Continental, which recently merged with United Airlines, was absorbing the extra cost in the North.
A process to devolve the responsibility for APD to the Northern Ireland Assembly from London has also been launched.
It's hoped that the decision will make it easier for the Executive to develop other long-haul routes from Northern Ireland's airports and make it more competitive with Dublin.
The North's finance minister Sammy Wilson welcomed the decision, which he described as "crucial for business and for tourism."
Northern Ireland's business leaders have said the decision will give the local economy a massive boost.
Tony O'Neill, business development director at Moy Park food company, said the cut was
crucial.
"Continued access to these crucial routes enables companies such as Moy Park to continue to grow and develop on an international scale," he said.
