The Ryanair company threatened on Wednesday to stop serving ten French regional airports from January 1 if increased taxation of the air sector is included in the 2025 budget.
“Ryanair is currently reviewing its French programs and expects to reduce capacity to and from French regional airports by up to 50% from January 2025 if the French government continues its short-sighted plan,” said Ryanair’s commercial director. Irish low-cost carrier, Jason McGuinness, quoted in a press release.
Beauvais and Vatry would not be affected
Ryanair currently serves 22 airports in France, including two close to the Paris region: Beauvais (Oise) and Vatry (Marne). The regional airports affected by the end of operations would therefore be among the 20 others. Ryanair did not cite any on Wednesday.
The company also did not wish to say to what extent its total supply in France would be reduced if it carried out its threat. It hopes to transport 5.7 million people there this year, an increase of 19% compared to 2023.
In search of funds to reduce a larger-than-expected budget deficit, the government included in its 2025 finance bill (PLF) a tripling of the solidarity tax on plane tickets (TSBA) and an increase of the taxation of private jet passengers, for a total of one billion euros.
“The impact of increasing taxes on passengers will be most detrimental for regional France, which depends on competitive access costs,” argued Jason McGuinness, estimating that this increase “will make many routes to and from the non-viable regional France”.
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What could be the broader economic impacts on tourism in France if Ryanair follows through with its threat?
**Interview with Dr. Emily Carter, Aviation Analyst**
**Editor:** Thank you for joining us today, Dr. Carter. Let’s jump right into it. Ryanair has recently threatened to cease operations at ten French regional airports starting January 1, 2025, if the government proceeds with proposed air sector taxation. What are your initial thoughts on this announcement?
**Dr. Carter:** Thank you for having me. This move by Ryanair underscores the airline’s strong stance against increased taxation, which it sees as detrimental to its operational model and competitiveness in the crowded European market. Ryanair operates on thin margins, and any additional taxes could significantly impact their already low-cost offerings.
**Editor:** The airline mentions reducing capacity to and from French regional airports by up to 50%. What could be the implications of this for local economies relying on these services?
**Dr. Carter:** The implications could be quite severe for regional economies. Airlines like Ryanair often serve as vital links for tourism and business travel in these areas. A reduction in flights could lead to decreased tourist traffic, impacting local businesses and potentially leading to job losses in sectors reliant on travel. Additionally, fewer flight options could limit connectivity for residents, making it harder for them to access larger hubs.
**Editor:** What might motivate the French government to consider such increased taxation on the air sector?
**Dr. Carter:** Governments often look to raise funds for a variety of reasons, including infrastructure improvements and environmental initiatives. In this case, the French government might be aiming to align the aviation sector with its climate goals or to fund post-pandemic recovery efforts. However, this approach can often overlook the immediate economic consequences for regions reliant on low-cost carriers.
**Editor:** If Ryanair follows through with its threat, how might this affect competition in the European airline market?
**Dr. Carter:** If Ryanair reduces its footprint in France, it could open opportunities for other low-cost carriers to fill the void. However, it may also lead to higher fares as competition diminishes. The loss of Ryanair routes could mark a significant shift in market dynamics, especially in regions where they provide the primary low-cost option.
**Editor:** Lastly, what are your predictions for the future of air travel in Europe if such taxation measures take effect?
**Dr. Carter:** If these taxation measures are implemented, we may see a trend toward higher fares across the board, especially with low-cost carriers. This could lead to reduced travel demand and ultimately impact the market’s recovery post-pandemic. Airlines might need to rethink their strategies and pricing models, which could result in some routes becoming less viable. In the long term, it could push airlines to focus more on profitability over expansion, fundamentally changing the landscape of air travel in Europe.
**Editor:** Thank you, Dr. Carter, for your insights. It will be interesting to see how this situation evolves as the 2025 budget discussions progress.
