Derry‑Dublin flight restoration blocked by UK air passenger duty

The City of Derry Airport is set to resume a direct service to Dublin for the first time since 2011, funded by €2 million from the Irish Government’s Shared Island Fund under a Public Service Obligation (PSO) scheme. The route, slated to launch in October pending a tender, faces a financial obstacle because the UK Treasury will not waive Air Passenger Duty (APD) on the flights, citing a rule that exempts only routes that start and end within the United Kingdom.

Northern Ireland’s Economy Minister Caoimhe Archibald expressed “deep disappointment”, warning that the tax “runs entirely contrary to the objective of ensuring the sustainability of the route because of its regional significance”. She argued that the APD would raise passenger costs and threaten the region’s infrastructure and tourism. The UK government said it is open to talks, while the Irish side reiterated that APD is “a matter for the UK government”. The Derry‑London PSO route remains exempt, highlighting the disparity.

The dispute underscores cross‑border tensions over transport funding and tax policy, with both governments seeking a resolution before the October restart.