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Ryanair To Close Norwegian Base In Response To Tax

by Ulrika Lomas, Tax-News.com, Brussels

02 June 2016


Ryanair, Europe's largest low-cost airline, has confirmed that it will close its base at Rygge Airport near Oslo and reduce its Norwegian traffic by half as a result of the introduction of Norway's air passenger tax.

Following the introduction on June 1 of the NOK80 (USD9.60) tax on all passengers departing from Norwegian airports, which is collected by airlines, Ryanair said that it "has been left with no choice" but to cease operations at Rygge from October 29 this year.

Ryanair said in a statement issued on the day the passenger tax was introduced that its decision would result in the cancellation of 16 routes and reduce the airline's Norwegian passenger traffic by almost one million per year.

"Since Oslo Rygge has confirmed it will be unable to sustain reduced services offered by Ryanair, we will move our remaining 8 Rygge routes to Oslo Torp from October 30," said Ryanair's Chief Commercial Officer, David O'Brien.

According to Ryanair, airlines operating in Norway "had repeatedly warned of the damage this tax would have on Norwegian air travel."

"This tax will severely damage Norwegian tourism, particularly around regional airports," O'Brien added. "The Norwegian Government has instantly made Norway uncompetitive and less attractive to airlines and tourists."

TAGS: tax | air passenger duty (APD) | aviation | Norway | travel and tourism | Europe

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