Government Policy & Impact - Several European countries like Sweden, Croatia, Hungary, and Italy are abolishing environmental taxes on air travel to stimulate economic growth, leading to increased airline capacity in those regions [1][3] - The UK's increase in Air Passenger Duty (APD) is criticized for negatively impacting regional UK airports [2] - The speaker claims a proposal to abolish APD outside of London was made, promising 50% traffic growth in five years, but the government instead increased APD by two quid, leading to a 33% increase to £14 in April [2] Airline Strategy & Response - Airlines in the UK are threatening to move capacity from regional airports like Glasgow, Edinburgh, Manchester, and Birmingham to countries with lower or no environmental taxes [3] - Ryanair, as the largest airline in the UK, is considering moving approximately 10% of its capacity, equivalent to 5 million seats, out of the UK to countries like Sweden and Italy [4][5] Financial Implications - The airline sector is currently performing well, but further increases in APD could lead to a shift of capacity, flights, aircraft, and jobs out of the UK [3][4]