Briefing Note on Air Passenger Duty and the Derry to Dublin Air Route

The 2020 New Decade, New Approach agreement, which brought about the restoration of the power-sharing government in Northern Ireland, contained within it the following commitment from the Irish Government:

The Irish Government also intends to take forward a review of the potential for Government support to renewed viable air routes from Cork to Belfast and Dublin to Derry, working with the UK Government and Northern Ireland Executive to deliver improved connections as a priority (p.59).

However, on 22 October 2026, the Chair of the House of Commons Northern Ireland Affairs Committee, Tonia Antoniazzi MP, wrote to the UK’s Chancellor of the Exchequer noting that ‘the application of Air Passenger Duty to the Derry ̴Londonderry to Dublin route could threaten the viability of that service and significantly undermine its potential’.

Authored by the Centre’s Director, Anthony Soares, this Briefing Note offers an overview of recent developments relating to the restoration of the Derry to Dublin air route, why the route is liable for Air Passenger Duty, and what that could mean for its viability.

It also sets out possible approaches to ensuring the route’s future success is not undermined by the imposition of taxes that would make it less attractive to potential operators of the route.

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