UK air passenger duty on long-haul flights from Northern Ireland is to be cut in a bid to retain Continental Airlines' service from Belfast to New York Newark.
The UK treasury today said that from 1 November APD on long-haul routes from Northern Ireland will drop to the lower short-haul rate of £12 ($18.80) per passenger in economy and £24 for business and first class passengers.
This move will ensure that Continental does not pull out of Belfast, therefore "maintaining Northern Ireland's vital economic air link to North America", said the treasury.
"The government has taken proactive measures to protect the only direct long-haul service operating from Northern Ireland and with it the jobs of those who serve the Belfast route," said UK chancellor George Osborne.
The move was necessary because airports in Northern Ireland operate in "unique circumstances" within the UK, said the treasury.
Differing air passenger taxes south of the border in Ireland "had threatened to make long-haul flights from Belfast uneconomic".
Source: Air Transport Intelligence news
