Ryanair (FR, Dublin International) Chief Executive Officer (CEO) Michael O'Leary says the Irish LCC will roll back plans to cut flights and operations across Italy should Matteo Renzi's government rescind its EUR2.50 (USD2.61) hike in departure tax implemented in January this year.
"The Minister of Transport, Graziano Delrio, is currently busy reviewing the municipal tax hike and guidelines for local regional airports: if this happens before June, we are ready to reopen talks with them about our winter plans," he said.
Following the tax increase, Ryanair warned that effective October of this year, it would close bases in Alghero, Sardinia and Pescara while pulling out of Crotone completely. Sixteen routes are also to be cut while capacity at regional airports will now be transferred to Ryanair's Rome and Milan bases. In all 600 jobs are to be lost this winter.
O'Leary said that according to the LCC's calculations, completely abandoning the total EUR9 tax could see up to 50 million passengers travelling to Italy thereby creating 17,000 more jobs. He warned however, that even though Southern Europe has become a more desirable destination given North Africa's persistent problems, Italy stood to lose out to the likes of Portugal and Spain if it insisted on maintaining the tax.
"Italy needs a tourism industry that creates jobs, especially for young people," he was quoted by Il Sole 24 ore newspaper. "But taxing visitors to Italy simply to pay for the pensions and retraining of Alitalia (AZA, Rome Fiumicino) personnel will do incalculable damage to tourism."
