The Scottish National Party (SNP) has confirmed a ‘yes’ vote in this week’s referendum will mean the end of Air Passenger Duty (APD) in Scotland.
It said scrapping the tax, which is the highest in the world, will benefit Scottish tourism as around two million visitors a year are currently deterred by APD.
APD is a duty which is charged on the carriage of passengers flying from a UK airport. The amount of duty charged is calculated using a variety of factors. In its original form the minimum APD charge on a ticket was £5 and the maximum was £40.
Controversially it has risen significantly since 2007 and the minimum now is £13 and the highest £188.
There are fears that a yes vote could damage airports in the north of England. In June, Newcastle airport’s planning director Graeme Mason warned that customers are mobile and will “shop around” for the cheapest flight and are prepared to travel “quite long distances to get those flights”.
"There are a number of options open to the government. They could abolish APD altogether, or they can match any reductions made by Scotland,” said Mason.
"But if they don't do this the North of England is going to be at a serious disadvantage to the rest of Scotland."
The latest polls show the Better Together campaign has a slight lead ahead of the vote on September 18.