Ryanair boss says UK government support for aviation is just “publicity stunt” Ryanair

Michael O’Leary called UK government support for the airline industry during the pandemic “dismal”, as aviation executives called for further help and warned of a long recovery to come .

The Ryanair chief executive said fares would be reduced this summer to stimulate demand and that he was hoping for up to 70% of normal passenger numbers from July. O’Leary said the vaccines would allow travel, but added that border control regulations were “crazy.” He described the quarantine in hotels as “completely unpolishable”, saying the airline had not seen any medical evidence to support it.

“[It] has been a publicity stunt, shambolic and ineffective and plays no part in the fight against the Covid virus, ”O’Leary told members of the select transport committee on Wednesday.

He said he was “not a big supporter in principle of a vaccine passport” because he feared delays in getting an international deal in time for the summer, but said passengers should upload certificates indicating that they have had a vaccine or PCR test to travel.

Meanwhile, O’Leary said the Civil Aviation Authority has initiated ‘criminal proceedings’ against Ryanair for carrying Italian and German passengers to the UK with valid pre-departure written PCR test certificates. in their own language, rather than the required English, French or Spanish.

He said: “It’s this crazy, inconsistent kind of regulation that is designed to make the bureaucrats in the Department of Health look like they’ve done something. When in reality, this is completely insane.

O’Leary said it would be rude not to recognize the government’s support for its employees through the leave program, adding that the airline could not afford to top up pilots and crew salaries to the workers. normal levels. However, he criticized the government, saying ministers had been dismal in providing further support.

Asked about a UK £ 600million loan to Ryanair, an Irish airline, O’Leary said: ‘We are by far one of the biggest investors in UK aviation, UK airports and UK jobs. . ” He said the money would be paid back in the next 12 months: “We are very grateful, but it is a loan, we are paying interest on it, and it will be paid back,” he added.

O’Leary said the impact of the pandemic had been devastating for the industry, with Ryanair seeing ‘a swing of around 2 billion euros’ (£ 1.7 billion) in profit and loss in one year, and not expecting to break even before 2022..

The best Ryanair could hope for was “60-70% of our normal traffic during the peak summer months,” he said, adding: “We’re going to be dumping and lowering prices for the next six to 12 months. months to get back on the plane. “

While O’Leary reiterated calls for air passenger rights reform, airports called for more help with business fares. Full tariff relief has been offered to some sectors – which some large retail companies have reimbursed – but airports have been capped at £ 8million.

Karen Dee, chief executive of the Airport Operators Association, told the committee that the fare relief would only cover losses of around 13 days for UK airports, which have huge operating and security costs. “These are big costs that when you have no income and hardly any passengers you just can’t cover… it’s not a sustainable position for any business,” she said.

Tim Hawkins, managing director of MAG, England’s largest airport operator, said data from the Office for National Statistics showed aviation had been hit the hardest of all UK industries. It would take longer to recover and yet he received little help, he said. “The industry-specific support, commercial tariffs, only gives half of our responsibility to Manchester and Stansted and only came in November, since our shutdown. It is very difficult to reconcile the support given to other sectors. “

He said the government’s global travel task force, which held a first meeting this week to prepare for possible overseas leisure travel from May 17, was just a “plan for a map”.

Aviation Minister Robert Courts defended the task force, saying that while the government hoped to “get certainty as soon as possible”, it was not possible to tell families or individuals what they wanted. should do for the summer.

“There is an element of risk assessment… people have to give themselves options and be clear about the implications of booking conditions and insurance,” he said.

Meanwhile, the Welsh government has announced it will inject more than £ 80million into ailing Cardiff airport to help it survive the pandemic.

The government-owned airport was one of the hardest hit, with traffic down 88%. The government will provide a grant of £ 42.6million and write off an additional £ 42.6million owed to it.

Wales Transport and Economy Minister Ken Skates said without help the airport risked bankruptcy and the state would lose all its investments.