Steve Heapy, chief executive of leisure carrier Jet2, has added his voice to those calling on the UK government to resist targeting aviation with tax rises in the forthcoming budget, warning that it risks making flying “the preserve of the rich and privileged”.
While Heapy is the latest airline chief to speak out against potential tax rises, others have largely focussed on Air Passenger Duty (APD) or a possible increase in income tax.
However, Heapy says aviation’s whole tax regime should be considered, including environmental levies such as the sustainable aviation fuel (SAF) mandate, which will next year rise to 3.6% “while still costing three times more than [standard] aviation fuel”.
Taxes on airlines are a “form of demand management”, he argues, which if continued will result in a “situation where flying becomes the preserve of the rich and privileged”.
“That is a disgusting and divisive policy – flying should be for everyone,” he says.
“The people not being able to fly will be those at the lower end of the income scale and that I think is a completely wrong policy,” he says.
He also calls on the UK government to implement a long-proposed revenue certainty mechanism for SAF producers to stimulate demand, and “move at a quicker pace” to reform the country’s outdated airspace.
Although successive governments have promised action on the topic over many years “I have seen glaciers move faster,” he says.
Heapy was speaking at an event at London Gatwick airport on 12 November, where Jet2 announced it will establish a base from late March next year deploying five Airbus A321neos.
His comments on aviation taxes were echoed by newly appointed London Gatwick chief Pierre-Hugues Schmit. “It is important to keep flying for the many, not the few,” he says.
Jet2 was able to secure long-sought slots at the London area hub after operational changes and “significant effort” helped to “unlock” additional capacity in the first morning wave, says Schmit.
“It took us a lot of effort to get there, and it is fair to say that Jet2 saw the opportunity and asked for those slots.”
Heapy says London Gatwick has been a target for Jet2 for “a long time” but was hampered by slot constraints. “There was a possibility in the past for one aircraft… which is not a great proposition.”
Ian Doubtfire, Jet2 business development director, describes London Gatwick as “the best leisure airport in the UK”, citing its “great catchment area” in the south of England.
“Since we started Jet2 in 2003 it’s always been my wish and desire to come to this airport.”
In the early part of the decade, Jet2 placed several orders for a total of 146 A321neos, all in a 232-seat layout, and has since taken delivery of 23 examples, a figure that will rise to 26 by the end of March next year. After that, the carrier will receive 10-12 jets every year until 2034, says Heapy.
“There are some for growth and some for replacement – we can change the mix if there’s a big growth opportunity.”
That could even be at Gatwick – slot allocations permitting – says Heapy: “We have a track record of growth and hopefully we’ll continue to grow in this base.”
The Airbus jets will progressively replace the older Boeing 737s in Jet2’s fleet: the carrier still operates seven -300s and 93 newer -800s.
For Gatwick, Jet2’s arrival marks continued progress since the lows experienced during Covid-19.
Short-haul operations have now fully recovered against 2019 levels, and while long-haul operations are only at 75%, they continue to grow strongly and the airport has a “very rich pipeline”, says chief commercial officer Jonathan Pollard.
One of the big reasons for the large fall in long-haul flights from the airport was Virgin Atlantic’s decision to consolidate its operation at London Heathrow.
“I think we’ll see them back at London Gatwick in the future,” says Pollard, with the two parties remaining in contact. “We are ready and waiting when they wish to come back.”
