Ryanair, Europe’s leading low-cost airline, has unveiled plans to introduce four new routes from London for the Winter 2024 season. The new destinations – Dubrovnik, Linz, Reggio, and Sarajevo – aim to provide UK residents and visitors with an even wider array of travel options.
This expansion reinforces Ryanair’s commitment to the UK market, where it currently operates over 640 routes and transports more than 57 million passengers annually.
Ryanair Presence in UK
The airline’s substantial investment in the UK is evident in its fleet of 117 aircraft based in the country, representing a significant $12 billion commitment. This extensive network not only offers unparalleled choice and reliability to travelers but also plays a crucial role in supporting the UK’s tourism industry.
Ryanair’s operations contribute to over 45,000 British jobs, highlighting the airline’s importance to the UK economy.
Passenger Tax Challenges
Despite Ryanair’s continued investment and growth in both London and regional cities across Britain, the airline points out a significant challenge facing the UK aviation sector.
The Air Passenger Duty (APD) tax, currently the highest in Europe, places a considerable burden on UK airports and passengers. This tax, Ryanair argues, puts UK tourism at a distinct disadvantage compared to its European counterparts.
In light of this, Ryanair is calling on the new UK government to take decisive action. The airline believes that abolishing APD for all travel would pave the way for ambitious growth in the UK aviation sector.
Ryanair has outlined a comprehensive plan that could be implemented if the APD is scrapped, promising significant benefits for the UK economy and job market.
Ryanair’s UK Growth Strategy
The airline’s growth strategy includes increasing its UK traffic by 14% to reach 65 million passengers annually by 2030. This expansion would create 1,000 new jobs for UK pilots, cabin crew, and engineers over the same period.
Additionally, Ryanair plans to open a new engineering training facility at Prestwick. This further invests in the UK’s aviation infrastructure and skills development.
Introduction of MAX 10 Aircraft
A key component of Ryanair’s proposed expansion is the introduction of 20 new Boeing 737 MAX10 aircraft. This investment is valued at $2 billion, with the aircraft to be based at UK airports.
These state-of-the-art aircraft offer significant environmental benefits. They deliver 20% more seats while consuming 20% less fuel and reducing noise pollution by 50%. This investment underscores Ryanair’s commitment to sustainable growth and modernizing its fleet.
Ryanair’s CEO, Michael O’Leary, emphasized the importance of low-cost air access for the UK’s island economy.
He highlighted the challenges posed by the APD, which imposes a £13 tax on all UK citizens and visitors. This effectively makes air travel to and from the UK less competitive.
In Contrast: The European Approach
O’Leary contrasted this with the approach of other European countries like Poland, Croatia, Italy, and Spain. these European nations are lowering costs and cutting taxes to stimulate rapid growth in their aviation sectors.
O’Leary pointed to Ryanair’s recent expansion in Italy as an example of the positive impact that can result from reduced aviation taxes.
He cited the decision by regions like Calabria to eliminate the Italian Municipal Tax. Ryanair responded to this by adding three new aircraft (a $300 million investment) and over 20 new routes.
The CEO asserted that if the UK government were to scrap APD on all flights, Ryanair would be prepared to implement its ambitious growth plan immediately.
This plan promises not only increased connectivity and job creation but also substantial investment in the UK’s aviation infrastructure.
Summary
As the debate over APD continues, Ryanair’s announcement of new routes and its call for tax reform highlight the ongoing challenges and opportunities in the UK aviation sector.
The airline’s proposals present a clear vision for growth. The carrier emphasizes the potential economic benefits of a more competitive tax environment for air travel. As the UK government considers its approach to aviation policy, the industry will be watching closely to see how these issues are addressed in the coming months and years.
Click the banner to subscribe to our weekly newsleter.
Click the photo to join our WhatsApp channel so then you can stay up to date with everything going on in the aviation industry!
