SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16
of the Securities Exchange Act of 1934
For the month of October, 2008
RYANAIR HOLDINGS PLC
(Translation of registrant's name into English)
c/o Ryanair Ltd Corporate Head Office
Dublin Airport
County Dublin Ireland
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual
reports under cover Form 20-F or Form 40-F.
Form 20-F..X.. Form 40-F.....
Indicate by check mark whether the registrant by furnishing the information
contained in this Form is also thereby furnishing the information to the
Commission pursuant to Rule 12g3-2(b) under the Securities Exchange
Act of 1934.
Yes ..... No ..X..
If "Yes" is marked, indicate below the file number assigned to the registrant
in connection with Rule 12g3-2(b): 82- ________
PROPOSED
TRAVEL TAX
(IF IMPLEMENTED)
WILL DEVASTATE
SHANNON
SAYS RYANAIR
Ryanair, Ireland's largest low fares airline today
(Monday, 13
th
October 2008)
responded to
weekend speculation that
the Irish Government
will introduce a new €10 (air)
travel tax
in Tuesday's budget
by expressing concern
s (a)
that it w
ill
be discriminatory,
if
it doesn't apply to competing ferry traffic
, (b) that it will be double taxation of the unfairest kind at Dublin Airport,
where the Government owned DAA monopoly is already taxing each departing passenger
over €15 per ticket and (c) if this rumoured €10
tax
(
which in many cases
exceeds
the average air fare
at
Shannon
)
will deal a devastating blow to the recent growth in low fare traffic to/from
Shannon.
In responding to
this week's probable
tax increases in the Irish budget, Ryanair said that while it
would be
disappointed
if
such a disproportionate tax
is
levied on air passengers to/from Ireland, it
i
s clear in the current environment that everyone, including air passengers would
have to shoulder a reasonable proportion of this burden. However Ryanair said
it
would be
entirely unfair for the Government to levy such a high rate of tax (
a
€10 tax equates to a 25% rate of tax on Ryanair's average €40
fare
)
if
at the same time the Government owned DAA monopoly
continues to
rip
air passengers off with up to €15 per departing passenger at Dublin.
Ryanair
is
call
ing
on the Government to use its ownership of the DAA monopoly to ensure that
these excessive and uncompetitive taxes at Dublin Airport were reduced by at least
50%
(or €7.00 per ticket)
, in order to help
consumers
shoulder
at least
some of this burden of increased taxation and to avoid Government double taxation
at Dublin Airport.
Ryanair
i
s also concerned that this taxation
(if it only applies to air travel) will be
discriminatory against air passengers,
if
it does not apply to competing ferry passengers. Ryanair called on the
Government to level the playing field by applying a similar rate of
travel
tax to ferry traffic which from an environmental point of view accounts
for
double the rate of
C02 emissions
in the EU
than air transport. The European Environmental Agency has confirmed that marine
traffic accounts for some 5% of European C02 emissions, compared to air traffic
which accounts for less than 2%. If this tourism tax is to be dressed up as an
environmental measure, then Ryanair believes it should apply equally to ferry
passengers, as well as air passengers in order to avoid dis
torting the market against
air
travel
.
Ryanair expressed its greatest concern at the effect
that any such proposed
travel tax
will have
on its low fare (loss making) base at
Shannon
. In the current year Ryanair expects to carry almost 1.9 million passengers
to/from Shannon, however for 5 months of the year, the average fare paid by
these
passengers
at
Shannon
is less than €10 per passenger. Accordingly this traffic simply cannot
sustain a
tax rate of over 100% (if a
€10 air travel tax,
is introduced)
and if this tax is applied to low fare passengers travelling to/from Shannon,
then it is inevitable that short-haul traffic to/from Shannon will collapse.
Ryanair simply cannot deliver up to 2 million passengers annually at
Shannon
, if the average fares paid by these
(mainly)
visitor numbers, is to be
increased by more than 100%, as a result of a
travel tax. Ryanair called on the Government to review this tax in
the case of
Shannon
Airport
, since price sensitive passengers simply won't travel to Shannon from Europe
if
a
Government travel tax results in
average air fares to/from
Shannon
being more than doubled
. Ryanair will be seeking an urgent meeting with the Minister for Transport
after Tuesday's budget
to outline its concerns about the impact of
any such
tax on
Shannon
Airport
, which may lead to a substantial reassessment of Ryanair's $400m investment
in
Shannon
and the continuation of its loss making operations there.
Commenting on
this weekend's speculation about a
travel tax, Ryanair's Michael O'Leary said:
"It is not unreasonable that
everybody in
Ireland
(incl. passengers) must play
some
part in shouldering the burden of the current downturn in Government
finances. However
,
we would ask the Government to ensure that air passengers are not unfairly
discriminated against in any such measures. We would ask the Government to avoid
doubl
e
taxing air passengers at Dublin by ensuring that the current high charges
at Dublin Airport (presently €15 per departing passenger) are reduced by at
least 50% to €7.50 per departing passenger in order to avoid double taxation
at Dublin Airport. There is no doubt that the substantial €800m
asset sale
windfalls recently enjoyed by the DAA monopoly can enable them to lower
these excessive passenger charges at a time of increasing travel tax.
"
We would also call for
a
level playing field
if any such tax is introduced
and a similar level of tax
being
applied to ferry passengers in order to avoid discriminating against air
passengers and in favour of ferry passengers.
"
Finally, we will be seeking an urgent meeting with the Minister for Transport to
outline the devastating impact that
any
flat rate
travel
tax will have on Ryanair's low fare, loss making base at
Shannon
. Given that average fares at Shannon for
5
months of the year are less than €10 per passenger, this tax will
cause
visitor numbers at
Shannon
to collapse
. We will be asking the Government to consider altering the basis of this
passenger tax to make it a percentage
(of the fare)
rate of tax, rather than a flat rate of tax, which would mean that passengers
paying higher fares
at Dublin Airport will pay slightly more, whereas passengers travelling at
extremely low fares to/from Shannon will pay proportionately less. It is important
that this tax burden fall on those who can afford to pay it, and those
choosing to
pay higher fares should pay a slightly higher rate of tax, but those paying the
lowest fares should pay a
similar
rate of tax, but not as
speculated this weekend a €10 tax which at
Shannon
will equate to over
a 100% rate of tax
for large parts of the year
"
.
Ends.
Monday, 13
th
October 2008
please contact:
Stephen McNamara
Pauline
McAlester
Ryanair Ltd
Murray
Consultants
Tel: +353-1-8121212
Tel. +353-1-4980300
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has
duly caused this report to be signed on its behalf by the undersigned, hereunto duly
authorized.
Date: 13 October, 2008
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By:___/s/ James Callaghan____
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James Callaghan
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Company Secretary & Finance Director
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