‘Sky high taxes to decimate low cost flights’
(Don’t live)Ryanair’s dominance of the budget airline sector will strengthen as higher cost carriers struggle under the burden of increased taxation.
A prediction that raised taxes will destroy low cost flights as the government takes drastic action to meeting its climate change commitments will be made by Travelzest chief executive Chris Mottershead at next week’s ABTA Travel Convention.
He will tell delegates at the event in Marrakech on November 25 that taxes on aviation in 10 years time will mean the end of low cost flying.
“The barriers to entry will be so high that there will be no more start-up airlines,” the former TUI UK boss said. “The big guys will get bigger, fares will rise and the weaker ‘over cost’ airlines will go out of business. The day of the £20 flight is numbered.”
The one exception will be the ultra-cost conscious Ryanair, according to Mottershead.
“It’s not about being no frills – that’s essentially a marketing ruse. The Ryanair model is all about cost and they are obsessive about it. No one even comes close. They claim that their costs are 30% lower than easyJet’s,” he said.
“They have aggressive expansion plans and still plenty of Europe to go for. They haven’t even started at Gatwick. How would 30 or so Ryanair aircraft in Gatwick in a few years time affect the big four tour operators.”
*Log onto www.TravelMole.com for all breaking news from the ABTA Travel Convention in Marrakech on November 24-27.
Report by Phil Davies
Phil Davies
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