Criticism of taxes
Ryanair boss insults German politicians
11/29/2024 – 1:36 a.mReading time: 3 min.
Ryanair Michael O’Leary speaks of bullshit politics and rails against German taxes on flights. Due to low returns, he announced cuts to the flight schedule.
The head of the low-cost airline ryanair, Michael O’Leary, has massively criticized German politicians.The airline boss, who is known for his pithy sayings, attacked the outgoing federal government harshly in an interview. He called it a “government of idiots.” In an interview with German journalists, he accused the Greens of ”only bullshit solutions,” as the “Berliner Zeitung” reports. He has no hope of enhancement: “I don’t think the next federal government will be better,” he is quoted as saying. Germany is “fucked” for the next few years, which is probably the best way to translate the “fucked” he uses.
O’Leary had asked for an interview at the Irish company headquarters in Dublin and initially praised German beer and the successes of the German footballers against england. When it came to aviation,however,the tone quickly became harsher. Germany has one of the “shittiest aviation markets in Europe,” complained the 63-year-old,according to the “Berliner Zeitung”. He also used fecal language in his assessment of German air traffic control and taxes on flights.
The head of the low-cost airline sees what he sees as high taxes and fees as a reason why the market for flights in Germany has not recovered after Corona. He calculated that the taxes would be 58 euros per passenger. Germans fly less than Italians, such as, and German airports have fewer passengers than others in Europe. “As an access point to the capital of Europe’s largest economy, BER is dysfunctional,” said Ryanair co-CEO eddie Wilson, according to the newspaper. His colleague O’Leary calls it a regional airport.
He is not completely alone in this.according to the new Institute for Air Transport in Hamburg, Germany is making slower progress than othre countries in recovering air traffic after the corona pandemic. “Global air traffic is gradually recovering to pre-Corona levels, but Germany is lagging behind, especially when it comes to decentralized connections,” said the institute’s acting director, florian Linke.
The delay is probably the result of high location costs and low economic growth.“This reduces the attractiveness for low-cost airlines and poses challenges for the advancement of regional airports,” said Linke.
According to the boss, Ryanair intends to use 300 new aircraft in the coming years, but probably hardly in Germany. The returns are too low for that. He doesn’t want to leave the market completely. But the company has already announced at the end of March that it will withdraw from Dortmund, Dresden and Halle/Leipzig airports and plans to reduce capacity at other locations. And O’Leary also announced for the 2025 summer flight schedule: “We will continue to make cuts.”
But Germany is not the only country on O’Leary’s list. Ryanair has threatened to stop flying to ten French airports from next year amid plans to considerably increase taxes on airline tickets in France. Ryanair expects to “cut capacity to and from french regional airports by up to 50 percent from January 2025 if the French government pursues its short-sighted plan to triple the passenger tax,” Ryanair commercial director Jason McGuinness said on Wednesday.
And there is also bad news from the Italian market,which was praised by the airline boss. There, the airline has to reimburse thousands of passengers for the additional fees they charged for checking in at the airport. The Italian competition authority AGCM announced on Thursday that Ryanair had “not adequately” informed its customers about this additional fee. The airline charged 55 euros if passengers had not checked in online within a deadline set by Ryanair and had to do so at the airport.
What are the potential economic impacts of high flight taxes on low-cost airlines like Ryanair?
Interview Between Time.news Editor and Aviation Expert
Editor: Welcome to Time.news, where we dive deep into the most pressing issues affecting the world today. Our topic of discussion centers around Ryanair’s CEO, Michael O’Leary, who has recently launched a scathing critique of German politics, especially regarding taxation on flights. Joining us today is Dr.Hans Müller, an expert in aviation economics. Dr. Müller, thanks for being hear!
Dr. Müller: Thank you for having me. It’s an interesting topic, indeed.
Editor: O’leary didn’t hold back,referring to the German government as a “government of idiots” and claiming that there are no effective solutions for the airline industry from the current governance. How critically importent is this type of public outburst from a high-profile CEO like him?
Dr. Müller: It’s quite significant, actually. O’Leary’s statements reflect not only his frustration but also highlight a broader tension between low-cost airlines and regulatory bodies. His choice of words, while inflammatory, brings attention to the challenges that low-cost carriers face, especially in a market with high taxes and stringent regulations.It can be seen as a call to action for policymakers to reevaluate their approach.
Editor: He particularly criticized the Green Party, claiming they only propose “bullshit solutions.” Given that environmental policies often come with increased costs for airlines, how can we balance environmental concerns with the lasting operation of low-cost airlines?
Dr. Müller: That’s a delicate balancing act. While it’s imperative to address climate change, we also need to consider the economic implications of thes policies. O’Leary’s remarks underscore the anxiety among airline CEOs regarding the costs imposed by environmental regulations, which can make flying more expensive and less accessible for consumers. It’s about finding innovation and incentives for greener practices that do not cripple the business model of low-cost carriers.
Editor: O’Leary has also stated that he has no hope that the next federal government will improve the situation. Given Germany’s political landscape and the challenges posed by fluctuating market conditions, how do you foresee the future for Ryanair and other low-cost airlines in Europe?
Dr. Müller: The outlook is mixed.On one hand, there is growing competition and demand for air travel, particularly in the post-pandemic recovery phase. On the other hand,regulatory burdens and tax policies in countries like Germany could stifle growth. If the next government does not take a pragmatic approach that recognizes the needs of the aviation sector while also addressing environmental issues, we could see reduced flight schedules and higher fares.
editor: O’Leary has mentioned potential cuts to Ryanair’s flight schedule due to these low returns.What impact would this have on the broader travel market?
Dr.Müller: Cuts to flight schedules would likely lead to increased prices and less competition in certain routes. This could push consumers toward other travel options, such as trains or cars, especially in countries with efficient rail networks. In the long run,it might also benefit competitors who can capitalize on Ryanair’s reduced presence in the market.
Editor: Lastly, O’Leary’s criticisms seem to resonate with a sentiment of frustration within the industry. Do you think this kind of public pushback can lead to tangible changes in policy?
Dr. Müller: Public outcry can certainly influence policymakers, especially when it comes from someone as prominent as O’Leary. However, real change often requires sustained advocacy from multiple stakeholders, including airlines, consumers, and environmental groups. If his comments ignite a broader discussion about the health of the aviation industry and taxation policies, we could see some movement in the right direction — but it needs to be more than just rhetoric.
Editor: Thank you, Dr. Müller, for your insights on this volatile topic. O’Leary’s frustrations are certainly a reflection of the complex interplay between the aviation industry, government policy, and environmental responsibilities. We appreciate your expertise!
Dr. Müller: Thank you for the chance to discuss these critically important issues.