showdown between Ryanair and the Hungarian government

Published on : 08/08/2022 – 23:16

The low-cost company, whose thirty planes land in Budapest every day, was fined 875,000 euros on Monday August 8. The Hungarian government accuses him of having deceived consumers. The origin of this dispute is the new tax on “super profits” imposed on large companies by Viktor Orban, which came into force on July 1st. But not only the CEO of Ryanair disputes this new tax, but he sent a volley of green wood to the Hungarian government.

With our correspondent in Budapest, Florence La Bruyere

10 euros per passenger for short flights, and 24 euros for long haul flights, is the new tax that airline companies landing in Budapest must pay. The new tax also affects large retailers, insurance companies, and telecom operators.

A tax made necessary by the war in Ukraine and rising prices, according to the Hungarian Prime Minister. It is about taxing the extraordinary profits of these companies that profit from a situation of war » (…) « Hungary must stay out of this war and protect the financial security of its families “, had declared Viktor Orban on Facebook last May, when he announced the tax.

But Ryanair is the only company to be fined heavily. The company increased the price of its plane tickets before the entry into force of the new tax. The CEO of the Irish company, the fiery Michael O’Leary, harshly criticized the Hungarian government, deeming the tax on non-existent profits absurd. Because during the pandemic, airlines lost a lot of money.

« The Hungarian Minister of Economy is completely stupid, I will send him a copy of the book “Economics for Dummies said the Irish businessman when the new tax was announced.

Respondent’s response: If only Ryanair reacted so quickly when customers complained… »

Ryanair, which does not intend to let it go, says it is ready to file a complaint with European justice.

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