Dan Milmo, transport correspondent 

Ryanair accuses Brown of ‘scalping’ flyers

2.30pm: Outspoken chief executive Michael O'Leary accuses the chancellor of stealing from air passengers by hiking taxes on flights. By Dan Milmo.
  
  

Ryanair chief executive Michael O'Leary
Ryanair chief executive Michael O'Leary Photograph: John D McHugh/AFP/GETTY

Gordon Brown was dragged into the row between airlines and the government today after Ryanair accused the chancellor of stealing from passengers by hiking taxes on flights.

Outspoken chief executive Michael O'Leary said customers had been "scalped" by a doubling of air passenger duty in the pre-budget report in December.

His comments followed an outburst by environment minister Ian Pearson, who last week labelled Ryanair "the irresponsible face of capitalism" for its refusal to take action on carbon emissions.

Mr O'Leary said: "Most of this environmental hysteria is an excuse for the government to raise tax revenues. People are being scammed here."

From February, the tax on a shorthaul flight from the UK will rise by £5 to £10, increasing to £40 for economy class tickets on long-haul flights, in a move described as an environmental measure by the Treasury.

The Ryanair boss said he had written to the chancellor asking for details of which environmental projects will benefit from the £1bn raised in additional tax revenue.

Mr O'Leary reiterated his opposition to the EU carbon emissions trading scheme, which airlines are due to join in 2011 and would require carriers to pay for the carbon they emit, adding up to £25 to the cost of a long-haul ticket.

Ryanair is boycotting the scheme because it will not include US airlines, although Mr O'Leary said he would join a global emissions trading network.

He said: "If there is some kind of global initiative on trading emissions then we would be happy to join it."

Mr O'Leary traded accusations of statistical chicanery with journalists at a heated press conference yesterday, claiming that there is "no factual basis" for targeting airlines in the battle against climate change.

Airlines account for around 2% of global carbon emissions and 5.5% of UK emissions.

According to a recent report, aviation could account for a quarter of British emissions by 2050, a figure which airlines deny strongly.

"If you look at China they are opening two coal-powered stations per week at the moment," said Mr O'Leary.

"What's happening about power generation in China? Why are we rolling around pulling wool out of navels about cheap flights to the UK? It should be dealt with on a worldwide basis."

A spokesman for the Treasury said the air passenger duty increase will save the equivalent of three quarters of a million tonnes of carbon every year by 2011.

He added: "The revenues raised from the increase will secure extra resources in the coming spending round for our priorities such as public transport and the environment."

Stephen Joseph, of green lobby group Transport 2000, said airlines will have to cut emissions if the government is to reduce carbon emissions by 60% by 2050.

Otherwise, other industries will have to reduce their carbon output further in order to accommodate the growth of Ryanair.

He said: "It is not acceptable that other industries should cut their emissions in order for aviation to continue growing.

"We would be happy to debate the facts with Mr O'Leary but judging by his past record we are not confident that he will reciprocate."

The Ryanair boss said he would not offset his carbon emissions, in the same week that Tony Blair pledged to offset C02 from his and his family's holiday travel.

Mr Blair was accused of taking a "muddle-headed" approach to climate change by one of his advisors after the Prime Minister said he won't fly less to help the environment.

Downing Street later said Mr Blair would offset his emissions.

Mr O'Leary said he had gone in the opposite direction recently, acquiring more methane-emitting cattle for his farm outside Dublin.

Methane is a greenhouse gas.

"I bought 50 cattle in the past few weeks, so I expect to increase my emissions," he said.

· Email business.editor@guardianunlimited.co.uk

 

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