Originally Posted by
Cymro
2. Probably not. INV was subsidised to recognise the fact that it's that much more remote than other destinations and so train travel, etc. wasn't viable, hence good air links are essential to the economic viability of the region. While there were some savings on APD, fares were (and are) different from INV and represented the bulk of savings for anything other above premium economy. I suspect the main distorting effect would be to attract passengers who would otherwise depart from elsewhere in Scotland; no reason why BA couldn't keep differential fares from INV if they wanted to attract the "ex-EU" price-sensitive market for premium cabins.
4. Will depend on the wording but if the aim is to benefit FlyBe and maintain competition in the industry, feeder flights should be excluded.
Would this approach not cause the government to charge APD on all travel with the final destination outside the UK including from INV? It would be hard to justify INV keeping a full exemption given that the main reason is connectivity in that region. No APD on all domestic would meet connectivity requirement.
I doubt BA worry about providing price sensitive ex-EU people at INV. What is the difference to BA if those people start in DUB, AMS etc. rather then INV? In most cases BA would fly them to the ex-EU location it the same way they would fly them to INV.