MEP Zala Černilec Tomašič, together with Slovenian carriers, GZS and OZS, called on Ursula von der Leyen to reject the regulation

Michael O'Leary, chief executive of the Irish low-cost airline Ryanair, has sharply criticized European Commission President Ursula von der Leyen, calling her "useless." He accused her of talking extensively about improving the competitiveness of the European economy but failing to take meaningful action. O'Leary also called for the introduction of environmental levies for transatlantic and long-haul flights operated by American and Chinese airlines, arguing that the current system is unfair. In an interview with Euronews, O'Leary stated that von der Leyen avoids taking action beyond speaking. He described the European Parliament as a "boat of lunatics" and blamed its members for passing regulations that increase flight costs despite passengers wanting lower fares. O'Leary argued that the European Union's emissions trading system (ETS) is unjust because it imposes stricter obligations on flights within the European Economic Area while exempting most long-haul international routes. He suggested that the EU should tax American airlines upon landing in Europe to ensure fairness. He pointed out that although long-haul flights account for only six percent of all departures from European airports, they contribute more than half of the carbon dioxide emissions in European air travel. The European Commission proposed expanding the ETS to include some additional international routes starting in 2029, but longer routes such as those connecting Europe with the United States and China remain largely excluded. Despite his criticism of environmental taxes and fees, O'Leary did not address the fact that the aviation industry in the EU benefits from several tax exemptions. Jet fuel used by commercial airlines is generally exempt from excise duties under European law. Member states can impose taxes on fuel for domestic flights, and with appropriate bilateral agreements, they can also tax fuel for flights between EU countries. International airfares in many European countries are also exempt from value-added tax (VAT) or subject to zero VAT rate. O'Leary also criticized von der Leyen for not implementing recommendations from a report on European competitiveness prepared by former Italian Prime Minister and European Central Bank President Mario Draghi in September 2024. According to him, the European Union has failed to implement any of the recommendations two years after the report was published, and von der Leyen hides in the Berlaymont building instead of taking action. O'Leary announced that airfares would significantly rise in 2027 due to increased costs and regulatory pressures. He also indicated that Ryanair plans to reduce the number of flights in Belgium, France, and Germany due to high local taxes, stating that these countries are not competitive compared to others with more favorable business environments. In response to similar concerns, European Parliament member Zala Černilec Tomašič, along with Slovenian transport organizations, wrote to von der Leyen urging the rejection or postponement of the new emissions trading system for road transport. They warned that this measure would further burden the sector already facing pressure from rising fuel prices, labor costs, driver shortages, and increasing regulatory demands. They emphasized that the transition to alternative fuels is not yet feasible without adequate infrastructure, grid access, and financial conditions. The proposed system, part of the Fit for 55 package, aims to operationalize in 2028. It covers emissions from fuel combustion in road transport, buildings, and other sectors, with costs typically passed on to end users through fuel suppliers. The system includes the Social Climate Fund aimed at mitigating social impacts. They urged the European Commission to delay implementation until proper conditions for a fair, feasible, and competition-neutral green transition are met. They highlighted the worsening competitive position of European and Slovenian carriers compared to companies in third countries operating under lower costs and different conditions. Instead of measures to improve competitiveness, additional burdens are being imposed, which will increase pressure on the sector. They also noted the impact of the current energy crisis, with high fuel and energy costs already affecting the entire economy and quality of life for citizens. Further increases in transportation and energy costs could raise living expenses, reduce purchasing power, and worsen the standard of living.