Ryanair Holdings PLC RYR LETTER TO UK CHANCELLOR RE FLYBE APD 'HOLIDAY' (0752A)
16 Gennaio 2020 - 04:00PM
UK Regulatory
TIDMRYA
RNS Number : 0752A
Ryanair Holdings PLC
16 January 2020
RYANAIR CALLS ON CHANCELLOR SAJID JAVID TO EXTEND FLYBE APD
'HOLIDAY' TO ALL UK AIRLINE COMPETITORS
Ryanair, which is the largest passenger airline operating to and
from the UK today (Thurs, 16 Jan) wrote to Chancellor of the
Exchequer, Sajid Javid MP, calling on him to extend the APD eco tax
'holiday' given to Flybe, to all of its UK airline competitors
including Ryanair, Easyjet and BA, as otherwise this government
subsidy to the billionaire owners of Flybe will be in breach of
Competition law and State Aid rules.
Ryanair pointed out that the Flybe business model is neither
profitable nor viable and has lurched from failure to failure
repeatedly over the last 20 years.
Ryanair also pointed out that while the Flybe business model is
unsustainable, it is owned by billionaires including Richard
Branson, Delta Airlines and Cyrus Capital, who do not need a
Government subsidy to prop up their failed airline investments.
Ryanair also rejected the false claims made by Andrea Leadsom that
Flybe has a 'viable' business model when everyone in the industry
knows that the Flybe business model is doomed to fail again and
again.
Ryanair's Michael O'Leary said:
"This Government bailout of the billionaire owned Flybe is in
breach of both Competition and State Aid laws. The Flybe model is
not viable which is why its billionaire owners are looking for a
state subsidy for their failed investment.
The reason why Flybe isn't viable is because it cannot compete
with lower fare services from UK regional airports on domestic and
EU routes provided by Ryanair, Easyjet, BA and others; and it
cannot compete with lower cost road and rail alternatives on many
smaller UK domestic routes. If Flybe fails (as it undoubtedly will
once this Government subsidy ends) then Ryanair, Easyjet, BA and
others will step in and provide lower fare flights from the UK
regional airports, as we already have to make up for the recent
failure of Thomas Cook Airways.
This Flybe 'subsidy' cannot comply with Competition, or State
Aid rules unless the same APD eco tax holiday and other Government
subsidies are extended to all other UK competitor airlines
including Ryanair, Easyjet, BA among others."
ENDS
For further information
please contact: Alejandra Ruiz Piaras Kelly
Ryanair DAC Edelman Ireland
Tel: +353-1-9451949 Tel: +353-1-6789333
press@ryanair.com ryanair@edelman.com
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END
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