Ryanair tells Burnham: Slash taxes or we’ll cut UK flights
The boss of Ryanair has warned Andy Burnham that the budget airline will cut its flight capacity in the UK if the government refuses to drop plans for a “double tax” on tourists. Michael O’Leary, chief executive of the Dublin-based carrier, has accused the government of planning to tax tourists twice, with mayors set to [...]
Ryanair's CEO Michael O'Leary has threatened to reduce flight capacity in the UK if the government does not eliminate the Air Passenger Duty (APD). The budget airline believes that the Labour government's plans to impose a "double tax" on tourists, with mayors having the power to levy an additional tax on overnight accommodation, will harm the UK's economy.
APD was recently increased from £13 to £15 for short-haul economy flights in April, and O'Leary is calling for its abolition. The airline is actively reducing its capacity in countries that impose such taxes, hoping to continue growing in the UK. If the government scrapes APD, Ryanair claims it will introduce 30 new aircraft, create 200 new routes, and hire 10,000 new workers.
O'Leary criticized the new Prime Minister's historical perspective, questioning his understanding of the UK's economic past. He also urged Transport Secretary Heidi Alexander to address the issues at National Air Services (NATs), where CEO Martin Rolfe faced criticism for the two technical outages that grounded thousands of flights earlier this month.
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