A low-cost airline chief has hit out at plans to increase taxes on air travel announced by the Chancellor Alistair Darling in is Pre-Budget Report.
Ryanair's Deputy Chief Executive and Chief Operating Officer Michael Cawley said regional airports like Liverpoll John Lennon International would be badly hit by the proposed tax hikes.
He also warned that the region's flourishing tourism industry could be a casualty in a knock-on effect from reduced air travel.
The Chancellor has indicated that APD for short haul traffic will rise from £10 to £11 in 2009 and £12 in 2010.
But Mr Cawley said the move would cause damage to the UK tourism industry at a time when visitor numbers are already falling, and would be devastating for regional airports where passengers are most price-sensative.
Ryanair has blasted the APD tax which had been billed as an environmental tax since it was introduced, confirming that not one penny of the duty has done anything to address environmental issues.
Ryanair pointed out that the tax fails to reward airlines, such as Ryanair, which invest in brand new aircraft and operate younger, cleaner, more environmentally-friendly aircraft.
Mr Cawley said the Irish-based airline will now enter into discussions with regional airports about the future viability of passenger traffic and growth predictions in light of the increased costs.
He also highlighted the fact that that its average fare during the winter at UK regional airports is just £10 with Ryanair absorbing the current £10 tax. However, he warned Ryanair will be unable to continue to absorb taxes which continue to increase the cost of air travel.
Ryanair has released 1 million £10 seats for travel in December, January and February, billed as a move to highlight that the need to keep average fares low during the winter months and to underline the damage this tax will have to UK regional airports where passengers are most price sensitive.
Speaking at Liverpool JLA Michael Cawley said: "This Government must realise that it can't tax the tourism industry out of a recession.
"BAA traffic figures show that passenger traffic has fallen since this tax was introduced and this increase will have a further damaging effect on passengers.
"BAA traffic fell by 5% in September and 6% in October with the first 10 months of the year showing a decline of 2%.
"As Ryanair has repeatedly shown, the tourism industry can only grow and thrive if it has lower access costs and not idiotic regressive taxation which hits the poorest, most price sensitive passengers, and makes UK tourism an increasingly unattractive option.
"Our greatest concern is the devastation this regressive tax will have on our regional bases, which we have grown due to Ryanair's commitment to lowering fares.
"The Government is insane if it thinks these pric- sensitive passengers will continue to travel if faced with increased costs.
"We have released 1million £10 fares to demonstrate the need for airfares, airport charges and so called environmental taxes to be kept low in order to keep passengers travelling – especially during the winter and the current recession."
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