LEVEL (Barcelona El Prat) will not operate out of the United Kingdom as the steep air passenger duty (APD) tax makes its low-cost long-haul operations unviable, IAG International Airlines Group CEO Willie Walsh warned in a letter to British Members of Parliament last week.

"If APD was axed, IAG could open new routes and operate LEVEL from regional airports", Walsh said. "Possible airports include Birmingham, GB, Cardiff, Edinburgh, and Manchester International".

Currently, every passenger departing on a long-haul flight from the economy is taxed GBP75 (USD105) in economy class and GBP150 in premium and business classes, although the rates are set to rise to GBP78 and GBP156 respectively from April 1, 2018. Connecting passengers, as well as flights departing from Northern Ireland, are exempt from the tax. Scotland is also planning to reduce and eventually scrap the APD.

Such a rate is detrimental to low-cost long-haul flights, Walsh argued, as adding it would nearly double the lowest fare offered by LEVEL.

IAG had earlier ruled out using its slots at London Gatwick, which is a hub for Norwegian Group long-haul operations, to establish LEVEL in the UK.

The group's low-cost long-haul unit, a virtual carrier using Iberia's air operator's certificate currently bases its aircraft out of Barcelona El Prat and plans to establish Paris Orly as its second base.