Tuesday, November 04, 2008

Ryanair calls for reversal of air tax decision

Low fares airline Ryanair has urged the Government to replace the €10 air tax with a percentage levy of the fare paid, a move that would see it maintain aircraft at Shannon.

According to the Irish Examiner, the airline said it will pull 75% of its traffic from Shannon next year if the Government goes ahead with plans it announced in the budget to impose a €10 tax on passengers. Ryanair admitted the tax is a necessary one, considering the economic climate, but added it should be replaced by a 5% tax on the base fare.

Chief executive Michael O’Leary (pictured left) called on the Irish Government "to replace this regressive flat rate tax with a fairer and more progressive percentage tax of the fare paid. This flat rate tax is grossly inequitable.