In its written evidence, Peel wrote of the loss of the VLM service: "At the same time, subsidised rail operators commenced an aggressive campaign to attract as many passengers as possible, by offering attractive fares.
"In less than six months, in June, 2007, the VLM service was stopped and JLA lost its only link to the London market."
Peel claimed rail travel could not compete for convenience, taking nearly 2½ hours to London, compared with 1½ hours by air.
And it said: "Favouring the rail sector over the air sector is unfair – it distorts competition and it deprives the consumer of having more travel options available.”
The group calculated the combined tax burden from APD and the emission trading scheme at £3.6bn by 2012 – far higher than the "environment cost" of flying, which it put at £2bn.
The all-party committee is investigating “The Future of Aviation”, examining whether the recession will hit expansion plans at regional airports – something Peel denied.
Ministers recently delayed the conclusions of a government inquiry – taking in the economic impact of losing an air link to London – until the autumn.
