...and another air-freight haulier threatens move to Luxembourg
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• Undercutting by Dutch drivers coupled with UK fuel and VED hikes is forcing Scottish air-freight haulier Kilsyth Transport to consider flagging out to Luxembourg.
Kilsyth, which is a listed agent and has to follow strict air-freight guidelines, says other firms from France, Romania, and particularly Holland, are offering an inferior but cheaper service.
The firm recently lost a contract delivering computers from UK airports to a Dutch competitor which offered the service for less than half the price.
Director Murray Brady says there is no room for manoeuvre. "If there is another 6% fuel rise in such a competitive market then there are going to be a lot of firms who will not survive,' he says.
Although the administrative costs of setting up an office at Luxembourg's Findel airport will be high, considerable savings can be made through lower tax and fuel costs. "Even if we have to employ some local staff the advantages still outweigh the disadvantages," Brady adds.
The air-freight haulier's 16 trucks and 27 staff will remain in the UK for now, but he warns that any further tax and VED rises will force the move.