GROWTH in the region could be grounded by holidaymakers’ “catastrophic” exodus from Newcastle International Airport, a think-tank has warned.

Policy North says the North-East should be able to set its own Air Passenger Duty (APD) level and see off a threat from Scotland.

Following the devolution of Air Passenger Duty (APD) to Scotland, the SNP government wants to cut the new Air Departure Tax (ADT) by 50 per cent, before scrapping it completely.

Policy North’s ‘Global North’ report found that families could save up to £194 per person by flying from Edinburgh instead of Newcastle.

This follows estimations by Newcastle airport earlier this year that when the Scottish government scraps ADT altogether, they would lose between 500,000 and 900,000 passengers per year.

Newcastle airport’s chief executive Nick Jones recently called for the Government to announce specific measures to support English regional airports from the impacts to ensure a “fair system without market distortions and a level playing field throughout the UK.”

Policy North has called on the Government to grant the North East special status due to its close proximity to Scotland.

Policy North founder and chair, Stephen Purvis said: "As our Global North report set out, if nothing is done to support regional airports from the Scottish government’s ADT devolution, the consequences could be catastrophic.

“Saving up to £194 per person slashes a huge amount off a family’s annual holiday spend, and in the face of such savings, it would be hard for families to turn down the opportunity to fly for cheaper – especially when Edinburgh airport is less than 100 miles up the road."