Ryanair, the low-cost airline that serves 10 regional airports in France, threatened to stop service if a proposed tax increase by the government is implemented. The French government has been scrambling to plug an unexpectedly large budget deficit. One of the measures under consideration is a tripling in tax on private jets and airline tickets.
Jason McGuinness stated in a press release that Ryanair is now reviewing their French schedules. They expect to cut capacity from/to regional French airports up to 50% by January 2025, if the French Government proceeds with their short-sighted plan of triple passenger taxes.
Ryanair operates flights from 22 smaller regional airports in France. Ryanair has not indicated which airports are at risk, but it is not the two closest to Paris. The Irish budget airline hopes that it will transport 5.7 millions people along its French routes in 2018, an increase of 19% from 2023.
To avoid the crippling labour shortages which curtailed capacity and caused travel headaches in the summer of last year, airports, airlines and government agencies are staffing up. In 2023, global passenger demand will likely return to pre-pandemic level on most routes. This will add pressure to an industry already stretched.
Ryanair said tax increases would be most impactful on passengers using regional airports. Regional airports are mostly served by low cost airlines, so the tax hike will have more of an impact.
McGuinness said that increased passenger taxes would be the most damaging to regional France because it relies on access costs that are competitive. He added that Ryanair would shift its operations to airports which would help it cut costs.
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