Edinburgh Airport has increased the rate charged for motorists dropping off passengers to £8.50.
The new level of charge is being introduced to help the airport pay their extra business rates bill which have risen by 142% to £8 million.
The airport says it is the highest rates payer in the Lothians and will now pay more than the next three largest rates payers combined.
No other airport in Scotland or the UK is facing such a rise, although rates at Glasgow Airport have risen by 51.5% and at Prestwick Airport by 39.1%.
In response Edinburgh Airport has said it will remove any reduction for electric vehicles from 18 May, but the free drop off area where passengers can pick up and drop off for free for 30 minutes without charge will remain in place.
Gordon Dewar, Chief Executive of Edinburgh Airport, said: “This decision to impose an unplanned and wholly disproportionate £8 million rates increase has an immediate and negative impact on our business. We made this clear in correspondence with the Lothians Assessor, who set the increase, and in discussions with the Scottish Government, which has endorsed it.
“A 142% increase reduces our ability to invest, grow and compete. In practical terms, it equates to funding around 200 jobs, two aircraft stands, or five new security lanes. It is not a cost that can be absorbed; it must be covered, and trade-offs like this are unfortunately unavoidable.
“Like many across the hospitality and tourism sectors who have seen business rates soar, we have no choice but to pass part of this cost on to passengers. We had not planned to raise fees this year, but the absence of a transitional relief scheme – equivalent to that available in England and Wales – leaves us with no alternative.
“We have always accepted that, given our size, we should pay more, but the scale of this increase is simply unacceptable.
“We have made clear to both the Assessor and the Scottish Government that a system which produces such markedly different outcomes for comparable assets operating within the same national economy cannot credibly be described as fair, proportionate or fit for a modern Scotland. This systemic inconsistency lies at the heart of our concern.
“While we welcome the manifesto commitment to review the business rates system, the harm caused by the current framework is already confirmed and must be addressed. We hope a fair and meaningful review can be concluded within this parliamentary term, and we will continue to engage with Ministers, including through early discussions, to help drive that process.”
Edinburgh Airport has written to the Convener of the Lothian Valuation Joint Board, which sets non-domestic rates, as well as the First Minister and the Public Finance Minister, to outline concerns about the way business rates are fixed.
