BAA has requested that the UK Government cut aviation tax after the Irish Finance Minister announced a 70% reduction to air passenger duty (APD).
Heathrow policy director Nigel Milton said that Ireland has recognised that aviation is fundamental to its recovery, and this should also be understood by the UK Government.
In the UK, APD was increased in November 2010, making travel to London expensive compared with travelling to Paris for Chinese, Indian or Russian visitors, according to BAA.
Irish Finance Minister Brian Lenihan announced that the Government of Ireland has decided to introduce a single revised rate for air travel tax of €3 from 1 March 2011.
In Ireland, the levy will be reduced from €10 ($15.8) to €3 ($4.7) from March 2011 on a temporary basis, while in Amsterdam the tax was cut completely in 2009.
Lenihan said the Dublin Airport Authority is prepared to introduce an incentive scheme for 2011, to provide a full rebate of airport charges for any additional traffic above the current levels.