NEW tax powers for Scotland could threaten the future success of a vital part of North-East infrastructure, airport bosses have warned.

Newcastle Airport is lobbying politicians at the upcoming Party Conferences to prevent Alex Salmond from seizing control over aviation tax Air Passenger Duty (APD) – leading to cheaper fares north of the border.

“All we are asking for is a level playing field,” said Graeme Mason, planning and corporate affairs director at Newcastle International Airport, who fears that cut price fares in Scotland might prompt an exodus of passengers and airlines to Scottish airports.

Mr Salmond pledged to halve APD in the first term of an independent Scottish Parliament and scrap it when public finances allowed. Despite losing Thursday’s independence referendum the SNP leader wants control over APD to be part of the devolution settlement promised by David Cameron and the Better Together campaign.

The UK is burdened with the highest aviation tax in the world, with long haul passenger bearing particularly heavy tolls. For example, a family of four flying economy class to Australia pay £376 in tax versus the equivalent of £160 in Germany, £15 in France and nothing in 25 other EU countries.

Mr Mason said: “The referendum has been a matter for the people of Scotland but now they have voted, we have to make sure devolution to Scotland doesn’t damage our region.

“There is already competition between airports in the North of England - Leeds, Manchester etc. - and those in Scotland.”

Newcastle airport contributes more than £600m to the regional economy, and employs 3,200 direct jobs. Its masterplan for growth aims to increase those figures to £1.3bn and 4,100 respectively by 2030.

Mr Mason added: “Newcastle Airport is a strong and successful regional airport in its own right and can certainly hold its own provided there is a level playing field. We make a major contribution to the economic wellbeing of the region. The abolition or reduction of APD in Scotland would give airports in Scotland an unfair advantage.

“We have already taken our case to Government and we will continue to campaign on this issue.”

Ross Smith, North East Chamber of Commerce director of policy, said: "North-East export performance has been the envy of the rest of the UK for some time and to remain a global gateway we must compete with other regions on an even footing.

If further devolution powers handed to Scotland includes the power to vary APD, then the rate for English regional airports must be set at a competitive level.

The power to abolish or reduce APD would give Scottish airports a grossly unfair advantage, with Scotland being able to offer significantly cheaper flights, which would not only impact on traveller numbers, but also impact on the ability for English airports to attract new airlines and maintain existing routes.

"Reform of the current APD levy should be done to benefit all regions of the UK, not just Scotland."