26 November 2008

Regional airports will be worst hit by APD plans

Regional airports will be worst hit by Government plans for a four-tier Air Passenger Duty, according to Ryanair.

Describing the move as regressive, it said the increase in APD for short-haul traffic from Ã&#pound;10 to Ã&#pound;11 in 2009 and Ã&#pound;12 in 2010 would be particularly devastating for regional airports where passengers and visitors demand low fares and are most price sensitive.

Ryanair said it would now enter into discussions with regional airports about the future viability of passenger traffic and growth in light of this increased cost.

It highlighted that its average fare during the winter at regional airports is just Ã&#pound;10, with Ryanair absorbing the current Ã&#pound;10 tax.

However, Ryanair warned that it would be unable to continue to absorb taxes which continue to increase the cost of air travel.

RyanairÃ¢â¬â¢s Michael Cawley said: Ã¢â¬ÅâœOur greatest concern is the devastation this regressive tax will have on our regional bases, which we have grown due to RyanairÃ¢â¬â¢s commitment to lowering fares.

Ã¢â¬ÅâœThe Government is insane if it thinks these price-sensitive passengers will continue to travel if faced with increased costs.Ã¢â¬~

As usual, the airline took the opportunity to launch a seat sale, releasing one million Ã&#pound;10 fares for sale to be booked on its website before midnight on Sunday (November 30).

By Bev Fearis