Ryanair boss Michael O’Leary has warned that proposed EU tariffs on Boeing aircraft would amount to a “self-inflicted wound” and damage both European and American aviation industries.
Speaking in a Bloomberg interview this morning, the Ryanair Group CEO said any move to impose retaliatory tariffs on Boeing planes would be counterproductive.
“I don’t think it’s in Airbus’s interest or in Boeing’s interest to have tariffs applied on aircraft,” he said.
“Airbus sell as many long haul aircraft to the US carriers as Boeing does to the European carriers.”
O’Leary referred to an existing international framework, saying: “There’s a 1979 agreement that exempts commercial aircraft.”
He said the idea of taxing planes under current transatlantic trade tensions would hurt both sides of the industry.
While acknowledging concerns about a potential trade dispute, O’Leary appeared unconvinced that significant tariffs would materialise.
“Our experience with Trump and the tariffs is, you know, he talks tough and then they walk it back pretty quickly,” he said.
“You saw the deal with the Chinese, the deal with the UK.”
Asked whether Ryanair could avoid EU tariffs by taking aircraft deliveries through the UK, he said that was an option being considered.
“It’s a possibility,” he said.
“One of the alternatives, we could take the aircraft in through the UK.”
However, he stressed that the financial burden of any tariffs would not fall on Ryanair.
“We have a fixed price agreement with Boeing,” he said. “Our tariffs are a matter of Boeing’s problem, not ours.”
O’Leary also addressed a recent letter from American lawmakers requesting assurances that Ryanair would avoid buying Chinese aircraft from state-backed manufacturer Comac.
“I was written to by some US lawmakers asking me to guarantee that we won’t buy Chinese aircraft,” he said.
He said his reply was clear.
“I wrote back politely saying go to hell,” he said.
“We will reserve the right to buy aircraft wherever we so wish.”
O’Leary said that despite tensions, Ryanair had no realistic plans to purchase Comac jets.
“I don’t see any great prospect of us buying a Comac aircraft,” he said.
He praised Boeing’s current aircraft, particularly the MAX models used by Ryanair.
“Those aircraft offer us 4% more seats,” he said.
“They’re burning 60% less fuel. They’re transforming our economics.”
The warning comes as the EU considers retaliatory trade measures in response to unresolved disputes with the United States. The potential inclusion of commercial aircraft in any future tariff package has sparked concern across the aviation industry.