Ryanair offers to reverse cuts if travel tax is scrapped

Ryanair says it will reverse its recently-announced cuts in service at Dublin and Shannon airports if the Government agrees to scrap the €10 travel tax due to come into force at the end of the month.

The airline says scrapping the tax will avoid a fall of 2 million passengers expected as a result of its cuts and will stem the decline in passengers numbers through Irish airports.

It has also promised to increase passenger numbers at Dublin Airport by a further 2 million if the Government orders the Dublin Airport Authority (DAA) to reduce passengers charges by 30 per cent to return them to 2007 levels.

The proposals are made in a “rescue plan” for Irish tourism presented by chief executive Michael O’Leary to a meeting of the Government-appointed Tourism Renewal Group in Dublin Castle this morning.

“Instead of wasting scarce Government resources on more consultants’ reports, talking shops, strategy review groups or any of the other failed bureaucratic initiatives so beloved by the Government and the Civil Service, they should implement our measures, which would enable traffic and tourism numbers in Ireland to grow by 20 per cent over the next two years,” said Mr O’Leary.

Ryanair says the Government could save €125 million by scrapping Public Service Obligation subsidies on air routes, closing the “useless” aviation regulator’s office and lopping €100 million off Government spending on tourism. It also wants competing airports and terminals to be allowed incentivise low-cost traffic growth rather than focusing on new route schemes.

Mr O’Leary said Government policy was killing the tourism industry. “The €10 travel tax is without doubt the most stupid initiative of many stupid initiatives taken by this Government in recent months. You cannot stimulate tourism by taxing tourists.

These travel taxes have already caused UK and Dutch air traffic to collapse. The will have a similar effect on Irish traffic, particularly to the regions.”

According to the Ryanair boss, the airline is growing in every other European country except “high-cost” Ireland.