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Ryanair boss, Michael O'Leary, claims that an £11 duty on passengers flying out of the UK is an ‘insanely stupid’ measure that amounts to ‘tourism suicide.’ The levy, known as the Air Passenger Duty (APD), is enforced in the UK, but not in parts of Europe, leading airline bosses to consider moves to the continent.

O'Leary plans to reduce Ryanair’s base at Stansted Airport, resulting in the loss of seven routes, and the diversion of two planes to foreign airports. Unfortunately, the cull could have resounding consequences for the local economy, as up to 2,500 jobs could be lost from every airport department, from retail to security.

The Irishman claims that a rise in passenger duty in Ireland had earned the government €80m (£66m) in taxes, but cost the aviation industry €300m (£248m). The executive noted that a gesture in the opposite direction, i.e. the reduction of APD, prompts a huge rise in the number of people choosing to travel by plane.

APD has fallen significantly in Spain and the Canary Islands, helping Ryanair’s Spanish arm grow by 6% over the past year. O’Leary claims that moving aircraft to France, Spain, or Italy could save the airline £8m a year in taxes.

Willie Walsh, the chief executive of British Airways, has also announced plans to move the airline’s operations to Madrid-Barajas Airport in Spain, in protest at the government’s decision to scrap all runway expansions at Heathrow. The news could prove dire for the UK economy, especially if more airlines choose to follow Willie’s example.

In similar news, Phillip Hammond, the new transport secretary, was singled out for attack by O'Leary, after the MP announced an end to domestic flying within the next few years.

‘This is the sort of badly thought out nonsense we had from the last transport secretary,’ O’Leary said. ‘Try explaining that to the people of Belfast. Is he planning to build a tunnel under the Irish Sea?’ The coalition government is currently pursuing a revamp of British railways, reducing the need for short-haul flights.