The British Government has decided to apply Air Passenger Duty (APD) to flights on the forthcoming Derry-Dublin air service, drawing criticism from Economy Minister Caoimhe Archibald.

Minister Archibald said she was disappointed by the move, which comes as preparations continue for the launch of the route from City of Derry Airport later this year.

The service is a commitment under the New Decade New Approach agreement, which was backed by both the British and Irish governments. Its purpose is to improve connectivity in the North West and support regional balance.

The Economy Minister highlighted that her department is investing £4 million annually in City of Derry Airport, while the Irish Government is providing Shared Island funding specifically for the Derry-Dublin link.

She contrasted the decision with the existing exemption granted to the Derry-Heathrow route, which also serves a regional connectivity objective.

Minister Archibald warned that imposing the tax would push up passenger fares and undermine efforts to make the route sustainable. She stated she would continue to press the British Government to reconsider and remove APD from the service.