The Economy Minister has asked the UK Government to exempt the City of Derry Airport service to Dublin from Air Passenger Duty. The route is supported as a public-service connection and is intended to give the north-west direct access to Dublin Airport and its onward network.

The Department for the Economy said the UK Government intended to apply the tax to the service. Its objection is that a charge on each departing passenger would work against public investment already being used to maintain regional connectivity.

Northern Ireland's department is investing about £4 million a year at City of Derry Airport, while the Dublin link also forms part of cooperation supported through the Irish Government's Shared Island programme. The service operates across the UK-Ireland tax boundary despite covering a relatively short regional distance.

Air Passenger Duty is normally levied on passengers departing UK airports, with rates determined by destination and class of travel. Any exemption would require action at UK level; the Northern Ireland Executive cannot unilaterally remove a tax reserved to Westminster.

The request is therefore a policy position rather than a confirmed change for travellers. Passengers should continue to use the fare and tax information shown by the airline when booking. The wider decision will determine whether the route is treated as an ordinary international departure or a special regional connection.