24 June 2009

Ryanair freezes UK expansion in anti-APD protest

Ryanair is to put growth on hold at its nine UK bases "with immediate effect" in protest over Air Passenger Duty and high airport charges.

CEO Michael O’Leary called on prime minister Gordon Brown to axe APD, which is due to be hiked in November.

The so-called £10 tourist tax, combined with the high airport charges, have caused the loss of over 4.5 million passengers at BAA UK airports in the first five months of the year, Ryanair has estimated.

The Irish low fares carrier described the UK as now being a high cost tourism destination which is in steep decline.

Besides scrapping APD, O’Leary demanded that the sale of BAA’s Stansted and Gatwick airports be speeded up to prevent a further collapse in UK tourism and related jobs next winter.

If the UK traffic collapse continues for the full year the UK economy will lose over 10 million passengers, 10,000 airport jobs and over £2.5 billion in tourism spend in 2009 alone, with the government losing at least £350 million in VAT receipts, Ryanair argued.

O’Leary said:"Ryanair will grow by 15% this year to over 67 million passengers.

"However, the UK will not share in any of this growth in 2009 as Ryanair (the only major European airline continuing to grow) freezes growth at our nine UK bases.

"Gordon Brown’s £10 tourist tax will see Britain lose over 10 million passengers, 10,000 airport jobs and more than £2.5 billion in tourism spend in the UK this year alone.

"The government should follow the example of their Belgian, Dutch, Greek and Spanish counterparts by immediately scrapping this stupid and regressive tourist tax to avoid any further devastation to British tourism and jobs.

"Tourism is one of the UK’s most important industries and employers. It responds quickly to price changes.

"The government’s £10 tourist tax is making the UK an uncompetitive destination and they must scrap this tax now to prevent a further collapse of UK passenger, tourism and job numbers.

"While the UK keeps taxing tourists Ryanair will switch its growth to other EU countries where low cost airports are growing and where governments are welcoming tourists not taxing them."

by Phil Davies