O'Leary pooh-poohs green tax idea

Ryanair has dismissed calls for green taxes on aviation as the "usual horseshit" and warned that extra levies on airlines will not put people off flying.

Michael O'Leary, chief executive of the low-cost carrier, also ruled out joining the EU carbon emissions trading scheme, seen by some airlines as their best hope of avoiding punitive taxes as governments consider curbing the industry's contribution to the greenhouse effect.

"It's the usual horseshit that we hear," he said. "There is a fundamental misunderstanding about aviation and environmental taxes at the moment. No one knows what they are talking about."

Mr O'Leary's comments follow the publication this week of the Stern report, which warned of catastrophic economic consequences if climate change is not tackled.

Mr O'Leary said aviation accounted for a "Mickey Mouse" 3% of carbon emissions across the EU, compared with nearly 25% from road transport, which he said had not been affected by petrol levies and other charges. He added that Ryanair's growth will not be affected by further taxes because its ticket prices will remain more competitive than its rivals'.

"Taxing aviation will not affect the growth of Ryanair one iota," he said. "We will continue to grow like gangbusters because the price differential between Ryanair and easyJet and British Airways will not change." Recent economic studies contradict Ryanair, pointing to evidence that a price increase of 1.5% is enough to put some people off flying.

A leaked memo from the environment secretary, David Miliband, at the weekend urged the Treasury to consider raising air-passenger duty and introduce VAT on certain flights. Low-cost airlines have come in for specific criticism from the environmental lobby because they are the fastest growing in the industry and encourage "frivolous" air travel.

Speaking at the launch of an in-flight gaming service in London yesterday, Mr O'Leary said the government should focus on British Airways, which he said operates a "gas-guzzling" fleet of older aircraft.

"If people are serious about tackling the minuscule contribution of aviation, what they ought to be tackling are the operators of the old gas-guzzling aircraft like BA or those who run two flights to get you to your destination, unlike low-fares airlines."

Ryanair not joining carbon emissions trading scheme

A spokesperson for BA said the claims were "just not true" because the airline's 280-strong fleet has an average age of 10 years and it has started replacing its oldest long-haul aircraft.

Mr O'Leary also ruled out joining the EU carbon emissions trading scheme, which British Airways and other European airlines are pressing to join. The scheme is seen by many industry executives as the least worst option facing airlines, who fear that political momentum is gathering behind measures to tackle airline growth.

"I am far too busy doubling Ryanair over the next few years to be joining any carbon emissions trading scheme," Mr O'Leary said.

Ryanair describes itself as the "most environmentally friendly" airline because it is overhauling its fleet of Boeing aircraft with new fuel-efficient planes.

Mr O'Leary also dismissed Sir Richard Branson's pledge to invest $3bn (£1.6bn) in renewable energy over the next decade as a "PR stunt" because the billionaire expects to fund the promise from the profits of his transport interests, which include the Virgin Atlantic airline and Virgin Trains. "I doubt if the profit will get to $3bn over the next 100 years, let alone the next 10," he said.

Richard Dyer, aviation campaigner at Friends of the Earth, said aviation had to be tackled because its carbon emissions are expected to grow much more quickly than those of road transport or power generators. According to an Oxford University report, aviation will account for a quarter of UK carbon emissions by 2050 - up from 5.5% now - if no action is taken.

"Road transport and power generators are not growing nearly as fast as aviation," said Mr Dyer. "It is a problem for the future and that's why we have to curb demand now."

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