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dismantled so the engines could be sold or leased, according to aviation analyst Cirium. Avolon reported the aviation


supply chain “remains fragile” and “aircraft groundings have stubbornly persisted”, and said: “The current maintenance, repair and overhaul ‘super-cycle’ is set to continue [with] engine manufacturers increasing [maintenance] shop visit and spare-part pricing at rates well above inflation.” It warned: “The groundings are likely to persist through to 2028.” The lessor noted the high value


of engines and spare parts had hiked the share prices and market capitalisations of manufacturers such as GE Aerospace and Rolls-Royce, with Rolls-Royce shares “outperforming” those of silicon chip maker Nvidia. “The cost escalation, excessive


groundings and shortage of spare engines” had led to what Avolon called “the part-out of young aircraft”, meaning the removal of engines. These issues led Ryanair


to announce a multibillion- dollar plan to take its engine maintenance in-house this month through a deal with engine maker CFM – a joint venture between GE Aerospace and Safran Aircraft Engines of France. Ryanair will set up two engine maintenance workshops to service its fleet of aircraft and their almost 2,000 engines from 2029, with CFM having agreed a $1 billion-a-year deal for spare parts. Describing engine costs as


“completely out of control”, Ryanair chief Michael O’Leary warned: “There is going to be significant cost inflation on new aircraft, engines and engine repair for the next decade.”


England tourism bodies counter visitor levy plan


Ian Taylor


Industry associations ramped up efforts to try to halt moves towards allowing the imposition of local tourism taxes in England as a consultation on granting mayors and local authorities the right to impose visitor levies closed this week. More than 200 hospitality bosses,


including the chief executives of Butlin’s, Haven (holiday parks), Hilton Hotels, IHG Hotels & Resorts, Merlin Entertainments, Parkdean Resorts, Travelodge and Whitbread, wrote to the chancellor urging the government to scrap the plans. Led by industry association


UKHospitality, the signatories suggested a tax of £2 per person per night could add “£100 or more” to the cost of a two-week domestic family holiday and “force families to head overseas . . . put jobs at risk and drain money from local communities”. The World Travel & Tourism


Council also claimed that tourism levies “would dent growth, restrict


Local tourist taxes should be modest, says government


The government proposes to allow mayors and local authorities in England to introduce a “modest” tourist tax or visitor levy, saying mayors “should consider the right level for their area”. Local government secretary


Steve Reed argued: “Mayors and other local leaders are best placed


54 19 FEBRUARY 2026


Edinburgh will impose a 5% levy from July 24


“to enhance Edinburgh’s reputation as one of the most beautiful and enjoyable destinations in the world”. The 2024 Visitor Levy (Scotland)


Act requires funds raised by a levy to be invested in local facilities and services “substantially used” by business and leisure visitors. Edinburgh Council leader Jane


jobs and reduce competitiveness”. A consultation on granting local


authorities in England the power to impose a visitor levy was due to end on Wednesday (February 18). Local authorities already have


the power to apply a visitor levy in Scotland and Wales, and Edinburgh will become the first to do so with a 5% levy on hotel, B&B and holiday bookings to come into force on July 24. Edinburgh City Council


agreed a first ‘visitor levy spending programme’ last week with a detailed package of measures, costing more than £90 million over three years,


to identify and invest in the projects and infrastructure that drive growth and make a place attractive for visitors and residents.” Some cities in England already


have a ‘levy’ in place in so-called ‘business improvement districts’ (BIDs) but this is voluntarily added to bills by local businesses. A visitor tax of £1 per room has been in place in Manchester since 2023 and raised £2.8 million in its first year, with the money funding a campaign to boost visitor numbers in “lower occupancy months”. A Liverpool BID introduced a similar levy in 2025.


Salford Quays, Manchester A UK government spokesperson


explained: “We’re giving mayors powers to put more money into local priorities. We expect any new charges to be modest and in line with other countries.”


travelweekly.co.uk


Meagher said: “We’re proud to be the first local authority in the UK to push ahead with a city-wide visitor levy. I can’t stress enough just how big an opportunity this is for our city, our residents and our visitors. “These spend programmes will


help us not only sustain and enhance the things that make our city special, but also better manage the effects of tourism and major events on those who live here. What’s not to like about visitors to Edinburgh contributing towards projects and services that benefit us all?” The scheme is projected to raise


up to £50 million a year. Aberdeen and Glasgow have also agreed to impose visitor levies.


PICTURES: Shutterstock/Robin Guess, Robert Harding Video, TTstudio, Sergey Nivens, PeopleImages


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