Michael O'Leary criticizes Chancellor Rachel Reeves's support for a third runway at Heathrow, arguing for APD abolition instead.
Ryanair boss Michael O'Leary has criticized Chancellor Rachel Reeves 's support for a third runway at Heathrow Airport, calling it a 'dead cat' that won't materialize before the 2040s. O'Leary argued that the government should focus on scrapping air passenger duty ( APD ) instead of pursuing the expansion, which he believes will have little impact on growth. He stated that Ryanair could increase passenger numbers to the UK by 50% if APD were abolished, generating significant economic benefits.
O'Leary's comments come after Reeves announced in her October 2024 budget an increase in APD from the 2026/27 financial year. He described the proposed increase to £15 for short-haul economy flights as 'insane,' equating to a 33% tax rate on Ryanair's average ticket price.Reeves, however, defended her decision, stating that the expansion is 'badly needed' to connect the UK to emerging markets and new cities. She pointed out the lack of available slots at Heathrow, limiting connectivity options. While other airlines, such as EasyJet and Virgin Atlantic, have expressed support for the expansion, emphasizing its potential to boost connectivity and create jobs, O'Leary remains skeptical. He believes that abolishing APD would be a more effective way to stimulate growth in the aviation industry.The proposed third runway at Heathrow has faced significant opposition from environmental groups due to concerns about increased pollution and noise levels in London. The project also requires the demolition of over 700 homes and the relocation of a section of the M25 motorway into a tunnel. Despite these challenges, the government remains committed to the expansion, viewing it as a crucial step in enhancing the UK's global competitiveness and connectivity
Aviation RYANAIR MICHAEL O'leary RACHEL REEVES HEATHROW AIRPORT THIRD RUNWAY AIR PASSENGER DUTY APD AVIATION INDUSTRY GROWTH
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