Ryanair May Have To Pay New Green Surcharge

A new 'green' surcharge is looking to raise airline charges by making passengers pay for the pollution they create whilst travelling by air. The scheme has been proposed by Europe and may raise the prices of airlines such as Ryanair in the future.

The chief of Ryanair Michael O'Leary has said that if the proposed tax goes ahead his airline would be left with little choice but to raise air fares. Mr. O'Leary is fully aware that if a law is passed his airline will have to comply with that law however he feels the dramatic rise in fuel prices has changed the need for the tax. He went on to say that the tax had been valid when fuel had cost around the $40 a barrel mark, however with it now at approximately $130 a barrel he felt that the need for it was not as strong.

Ryanair plans to double its capacity by the year 2012 and has estimated passenger numbers to be around 80 million however the new tax - if brought into the industry could cost the airline up to $250 million which equates to approximately half of the profit it made in 2007.

IT is a worring time for the carrier as many other airlines have had to abandon their business plans in the wake of rapidly rising oil costs with many either going bust or lucky to break even.

If the tax is brought in as law however it may not be the terrible news some may think it is however as it will be rolled out to all airlines meaning that in spite of Ryanair having to raise prices all other airlines will have to do the same, cancelling out any disadvantage Ryanair may have been percieved to have had.

Published by: Jon Vickery