October 9, 2010 / 12:58 PM / 9 years ago

Ryanair suspends German expansion on tax -magazine

FRANKFURT, Oct 9 (Reuters) - Low-cost carrier Ryanair (RYA.I) has put expansion plans in Germany on hold because of a new airline passenger tax, the company’s Chief Executive Michael O’Leary told a German weekly.

The levy, however, does not affect the airline’s long-term growth prospects in Germany, O’Leary was quoted as saying by magazine Wirtschaftswoche on Saturday.

While Ryanair operates bases at three German airports, there is potential for at least 12 in the country, he said.

Last month, the German government said it would introduce a tax on airline passengers of 8 euros per ticket for short-haul flights rising to 25 euros for medium- and 45 euros for long haul. [ID:nBEB004474]

O’Leary told Reuters in July that he was considering putting plans for an additional German base on ice because of the looming tax. [ID:nWEA9090]

Reporting by Ludwig Burger

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