Air tax warning as Ryanair expands in Yorkshire

RYANAIR and Leeds-Bradford Airport have warned higher air passenger duties are hampering growth in UK tourism as the low cost airline launched four new routes from the region.

The decision to expand its operation in Yorkshire goes counter to the Irish company’s overall strategy which is to cut almost a fifth of flights from its winter schedule.

Annual passenger numbers at Leeds-Bradford Airport are now expected to rise from 2.5m last year to 3.3m with a significant proportion of that increase attributed to Ryanair’s growing operation.

Speaking at the launch, Leeds-Bradford Airport chief executive John Parkin confirmed that the airport hopes to start the £28m development of its passenger terminal in Spring 2011 but insisted the airport was well placed to welcome new business before that extra space is made available.

He said: “Airlines will not fly routes that don’t make money and won’t come to places that don’t offer them the chance to make money.

“UK aviation is having a very tough time currently, that’s clear. We are growing and we are not growing slowly, we are growing pretty aggressively and the airline with the most aggressive price structure is here and is going to grow. It is good news for us.”

Ryanair announced its decision to fly to four new routes as it published a winter schedule from Leeds-Bradford taking in 13 destinations, up from three last year.

But despite his upbeat assessment of the airport’s future, Mr Parkin warned the Government was risking damage to the aviation industry by imposing £11 air passenger duty when other countries were cutting duties on air travel.

He said: “People want low fares and they don’t want high taxes and when the tax goes up it does suppress demand or reduce the ability of airlines to invest.”

Ryanair deputy chief executive Michael Cawley said the success of the company’s Yorkshire operation showed there had been a pent up demand for travel in the region but warned that visitors were being discouraged by the tax on flying.

He said: “I would urge people, the Government, MPs, to look again at scrapping this tourism tax because that is what it is. It is charging a premium to come to Britain when countries like Spain are doing the opposite.”