Ryanair has announced a freeze on growth in the UK, blaming Air Passenger Duty (APD) and airport charges for making the UK a “high-cost tourist destination in steep decline”.
Chief executive Michael O’Leary called on Gordon Brown to scrap APD, predicting a collapse in tourism-related jobs if the prime minister does not. He said all Ryanair’s growth this year would be in Continental Europe.
However, O’Leary refused to join the ABTA-led industry campaign against APD, saying: “ABTA are a bunch of witless travel agents. It is the blind leading the blind.”
“Ryanair continues to grow like gang busters,” he said. “But there will be no growth in the UK for the rest of this year.” He added: “We will ground aircraft at Stansted again this winter.” The carrier grounded 20 aircraft at Stansted last winter.
O’Leary dismissed a suggestion that the UK low-cost market was already saturated, saying he would open at least two more bases and expand at other UK airports if APD was removed and airport charges cut.
However, he conceded Ryanair’s move to web-only check-in from October 1 would also hit employment – suggesting 200 ground-handling jobs would go.
O’Leary said Ryanair passengers would be able to carry “unlimited” bags on to flights once all check-in baggage had been eliminated – “so long as they can get them through security”.