'Sky high taxes to decimate low cost flights' - TravelMole


‘Sky high taxes to decimate low cost flights’

Monday, 18 Nov, 2005 0

(Don’t live)Ryanair’s dominance of the budget airline sector will strengthen as higher cost carriers struggle under the burden of increased taxation.

A prediction that raised taxes will destroy low cost flights as the government takes drastic action to meeting its climate change commitments will be made by Travelzest chief executive Chris Mottershead at next week’s ABTA Travel Convention.

He will tell delegates at the event in Marrakech on November 25 that taxes on aviation in 10 years time will mean the end of low cost flying.

“The barriers to entry will be so high that there will be no more start-up airlines,” the former TUI UK boss said. “The big guys will get bigger, fares will rise and the weaker ‘over cost’ airlines will go out of business. The day of the £20 flight is numbered.”

The one exception will be the ultra-cost conscious Ryanair, according to Mottershead.

“It’s not about being no frills – that’s essentially a marketing ruse. The Ryanair model is all about cost and they are obsessive about it. No one even comes close. They claim that their costs are 30% lower than easyJet’s,” he said.

“They have aggressive expansion plans and still plenty of Europe to go for. They haven’t even started at Gatwick. How would 30 or so Ryanair aircraft in Gatwick in a few years time affect the big four tour operators.”

*Log onto www.TravelMole.com for all breaking news from the ABTA Travel Convention in Marrakech on November 24-27.

Report by Phil Davies

 



Related News Stories:  



 

profileimage

Phil Davies



Most Read

Kittipong Prapattong’s Plan for Thailand’s Tourism Growth: Taxes, Visas, and Campaigns

James Jin: Didatravel’s Journey from China to Global Reach and the Impact of AI on Travel

Darien Schaefer on Pensacola’s Evolution: From Small Town to Global Destination

Florida Tourism’s Next Frontier: Dana Young on Expanding Beyond the Classics

Patrick Harrison on Tampa Bay Tourism’s Resilience and Marketing Strategy

Bubba O’Keefe on Clarksdale’s Vibrant Music Scene

Commemorating Elvis and Embracing Tupelo’s Culture with Jennie Bradford Curlee

Craig Ray and the Expansion of the Blues Trail

Presenting Mississippi’s Cultural Trails with Katie Coats

Robert Terrell: A Journey Through BB King’s Influence

Rochelle Hicks: Celebrating Mississippi’s Musical Legacy

Exploring Jacksonville with Katie Mitura: The Flip Side of Florida
TRAINING & COMPETITION

Our emails to you has bounced travelmole.com Or You can change your email from your profile Setting Section

Your region selection will be saved in your cookie for future visits. Please enable your cookie for TravelMole.com so this dialog box will not come up again.

Price Based Country test mode enabled for testing United States (US). You should do tests on private browsing mode. Browse in private with Firefox, Chrome and Safari