The outspoken Ryanair chief Michael O’Leary has said the Chancellor Rachel Reeves “hasn’t a clue” how to grow the aviation industry.
He said the Chancellor should make start by scrapping the air passenger duty (APD) instead of giving it “waffle” about Heathrow’s third runway expansion.
In the Budget Reeves announce APD increases from 20206 to 2027 financial year, O’Leary said her plan for Heathrow is a “dead cat” that will not happen until the earliest 2040.
At a press conference in London on Wednesday, O’Leary said, “The UK continues to lose out on enormous growth opportunities because you have a Chancellor who hasn’t a clue about how to deliver growth, has had five years to get ready for it, and yet has managed to screw it up in her first budget.”
He added: “Nothing is designed to damage growth faster than increasing taxes on air travel.”
The Ryanair boss said that the APD at £15 from £13 is “insane” as this is “a rate of tax of 33% on Ryanair’s average ticket price.”
O’Leary said, “The third runway at Heathrow is a dead cat.
“If it ever arrives, it will be about 2040, 2045 or 2050, in fact long after I’ve departed from Ryanair.
“It will not deliver any growth.
“The thing that will deliver growth is abolishing APD.”
He went on: “Here’s the prize we’ve offered to Rachel Reeves.
“We deliver about 60 million passengers a year to the UK.
“Within five years, we could grow that by 50% to 90 million passengers, and all she has to do is abolish APD.”
O’Leary continued, “Here’s the prize we’ve offered to Rachel Reeves.
“We deliver about 60 million passengers a year to the UK.
“Within five years, we could grow that by 50% to 90 million passengers, and all she has to do is abolish APD.”
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