A report by a centre-left think tank says that projected rates of growth in the UK airline industry are unsustainable. The Institute for Public Policy Research says that links between air travel and wider economic productivity are unproven, while increased congestion issues are frequently ignored. It adds that further growth is also likely to increase the UK's deficit in tourist expenditure. The report claims that growth is artificially stimulated by subsidies such as duty free, fuel tax exemptions and cross-subsidy of airport charges by retail activity. These are worth an annual £6 billion ($4.2 billion) the report claims, adding that without this passenger numbers over the next 20 years would rise from 180 million to only 240 million, rather than the projected 400 million.
Source: Airline Business
