Ryanair ready to quit Ireland over Sinn Fein’s ‘economic illiteracy’
Michael O’Leary says airline could easily move from the Republic as party takes commanding lead in the polls. By
Ryanair would quit Ireland if Sinn Féin takes power and “messes around” with the country’s competitive corporate tax regime, its chief executive has warned.
Left-wing Sinn Féin, which now enjoys a commanding lead in the polls in the Republic, is “economically illiterate”, Michael O’Leary said.
“We may well look at moving the headquarters out of Ireland,” he said. “If corporation tax rates start getting messed around with by a Sinn Féin government then yes, we would move. We wouldn’t have any difficulty leaving.”
Mr O’Leary has masterminded the success of Ryanair since the early 1990s, from a base close to Dublin Airport. Ireland has now established itself as a hub for the global aviation industry, with some of the world’s biggest leasing companies basing themselves there.
Despite Ryanair’s heritage, Mr O’Leary said he was prepared to move if necessary.
He said: “We see ourselves as a major European success story. We’re the number one airline in most of the European countries we operate. We’re proud of being Irish, but I wouldn’t die in a ditch over it.”
Any attempt by Sinn Féin to increase the top rate of income tax would also mean “everyone will be fleeing the country in their droves”, Mr O’Leary added.
Sinn Féin has surged in the polls over the last year. With 37pc, the former political wing of the IRA is 16 points ahead of Fine Gael and 20 points ahead of the ruling Fianna Fáil party.
With many in the country believing it is a case of “when, not if ” Sinn Féin comes to power, many companies fear that despite the 2020 manifesto pledges to retain the headline rate of corporation tax at 12.5pc, a less favourable tax regime will be brought in at the next election in 2025.
Mr O’Leary said: “When we have an election in two years’ time, it is assumed that there will be a Sinn Féin-led government. They are economically illiterate. But the way the Irish government is spending money, there may not be any money left to spend.
“Sinn Féin are advocating all the same Labour policies of the 1970s – a wealth tax, raising the top rate of income tax – in which case everyone will be fleeing the country in their droves.”
Mr O’Leary, 61, was an outspoken critic of Boris Johnson. But he said there was cause for optimism under
‘We are not going to sell £9.99 discounted tickets because capacity is still down across Europe’
Rishi Sunak who is “an improvement on the last f------ two”.
“I am reasonably optimistic that there will be some form of common sense, finally,” he said.
Ryanair has pinned its passenger growth plans on the delivery of a version of the Boeing 737 Max aircraft that is more fuel efficient and can carry more people. The airline expects to carry 167m people in the year to March 2023 rising to 185m the following year.
But deliveries of aircraft from the US planemaker have been beset with problems.
Mr O’Leary said: “I was out in Seattle last week. There are still a lot of problems with production delays and delivery schedules. We were supposed to get 51 planes before April 2023. Boeing is saying they hope to deliver them all by the middle of June. And there’s a risk that 10 of them might run into July or August.
“It’s frustrating. It’s the only cloud we can see on our growth horizon for the next year or two.”
Asked whether he had confidence in Boeing, Mr O’Leary responded: “Nope. The management in Seattle, no we don’t have confidence.
“Every time they tell us something, they don’t deliver on it. And it’s very hard to have confidence in a management that keeps making promises and fails to deliver.
Despite widespread travel chaos across the UK and Continent, airlines enjoyed a return to profitability over the summer after two years of Covid-related restrictions.
But some are not bracing for households and businesses to tighten their belts amid the cost of living crisis.
Nevertheless, Mr O’Leary said: “We have seen no fall-off or tail-off of bookings. The winter is strong. Christmas is very strong.”
Meanwhile, he dismissed suggestions that inflation, including volatile oil prices, would mark the death knell of low-cost flights.
“Our average fare of €40 (£34) is going to trend up over the next four or five years by maybe 5pc or 10pc a year,” he said.
“Over the next five years, our average fare will creep up from €40 to maybe €50 a ticket.
“So is it the end of low fares? No, it’s not the end of low fares. But we are not going to sell £9.99 discounted tickets because capacity is still down across Europe.”