Reduce Taxes Rather than Expanding Heathrow, Says Ryanair CEO
In a move that is set to stir controversy in the aviation industry, Michael O’Leary, CEO of Ryanair, has made a bold claim that reducing taxes would be a more effective solution to stimulate the economy than expanding London’s Heathrow Airport.
Speaking at the Aviation Club’s annual dinner, O’Leary emphasized that the current airport expansion plans would only serve to benefit a handful of airlines, while failing to address the pressing issue of taxation on the industry. He went on to suggest that a significant reduction in airport taxes and departure taxes would do more to stimulate economic growth than the proposed expansion of Heathrow.
O’Leary’s comments come at a time when the UK government is pushing ahead with plans to expand Heathrow, with a proposed third runway set to cost an estimated £14 billion. The move is seen as a major boost for the UK economy, with predictions that it could create up to 70,000 new jobs and add £31 billion to the country’s GDP by 2050.
However, Ryanair’s CEO argues that this expansion would simply lead to a surge in profits for a few large airlines, while failing to address the burden of taxation faced by smaller, low-cost carriers like Ryanair. "Why are we increasing airport taxes when we’re supposed to be promoting economic growth?" O’Leary asked. "If the government is serious about stimulating the economy, then they should reduce taxes, not increase them."
O’Leary also expressed concerns about the environmental impact of the proposed expansion, stating that it would do little to address the issue of carbon emissions in the aviation sector. "Expanding Heathrow will not make a blind bit of difference to carbon emissions," he said. "We need to focus on more sustainable solutions, such as investing in more efficient aircraft and developing alternative fuels."
Ryanair’s CEO has long been a vocal critic of the UK government’s aviation policy, and has previously clashed with Heathrow’s operators over issues such as noise restrictions and air passenger duty. However, his comments on airport taxes and expansion plans are likely to resonate with many in the aviation industry who believe that the UK’s current airport taxation system is in need of reform.
As the UK government continues to debate the merits of Heathrow’s expansion, it remains to be seen whether Ryanair’s CEO will be successful in his calls for a reduction in airport taxes. However, his comments serve as a reminder that the issue of taxation in the aviation industry is far from straightforward, and that a more nuanced approach is needed to truly stimulate economic growth and reduce the environmental impact of air travel.
