The Scottish Parliament will receive full powers over Air Passenger Duty, giving it the ability to change, replace or remove the fees for passengers altogether.

Despite being able to remove APD if decided, Holyrood will still be able to charge a fee to all passengers flying out of Scottish airports. According to the Government report, Holyrood will have to cover the costs of bringing in any new system involved in collecting these charges if it decides to replace APD with a new system.

The Scottish government will also have to pay Westminster any costs involved in removing the APD from flights starting in Scotland.