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Keep daa chief and fire the board, says Ryanair boss

Michael O'Leary said it would be 'unconscionable' to pay the daa chief executive a reported €1.2m to leave his role
Michael O'Leary said it would be 'unconscionable' to pay the daa chief executive a reported €1.2m to leave his role

The chief executive of the Ryanair Group has said it would be "absolutely unconscionable" to pay the daa chief executive a reported €1.2m to leave his role following a rift with the board of the semi-state.

Michael O'Leary said he believes the daa board of directors should be removed instead.

RTÉ News previously reported that an agreement had been reached in principle between Kenny Jacobs and the board, under which he will leave his role in the new year.

It is estimated the exit package, which would require ministerial approval, would be in the region of €1.2m, given the period of time remaining in Mr Jacobs’ contract.

Kenny Jacobs
Kenny Jacobs previously worked as chief marketing officer at Ryanair

Mr O’Leary said while he does not know the detail of what's going on between Mr Jacobs and the daa board, he said if it is costing €1.2m to get him out of the position, "frankly, they should keep him and get rid of the board".

"If it was me, I'd fire the board, but that would require a government with a spine, or a government in this country that is capable of making decisions," Mr O’Leary added.

He said while he is "not a great fan" of the work that Mr Jacobs has done in the daa, he said he also has "nothing but sympathy" for his former colleague.

Mr Jacobs previously worked as chief marketing officer at Ryanair.

Mr O’Leary said he believes "Kenny is as good a CEO of the daa as you're going to get".

"We do have major problems with the daa and their continued plan to build a tunnel under the airport that nobody needs, but he is as good as anybody else who's likely to come in and replace him."

Yesterday, daa said the charges airlines currently pay at Dublin Airport are unsustainably low and will need to rise, after it reported lower profits.

The Ryanair boss said if daa wasn’t paying the reported exit deal, "their costs would be considerably lower".

"If the change at [the] top of daa is going to cost €1.2m, then I see no purpose, no point in having that change," added Mr O'Leary.

O'Leary calls again for passenger cap to be abolished

Meanwhile, Mr O'Leary renewed his call on the Government to abolish the passenger cap at Dublin Airport, which he wants scrapped before the end of the year.

Mr O'Leary accused the Government of "blatant inaction" and doing "nothing" to address the 32 million passenger limit, despite a pledge in the Programme for Government.

Earlier this month, the Transport Minister Darragh O'Brien said he will be bringing legislative options to Cabinet on lifting the cap.

But the Ryanair boss has criticised the move and said any such legislation would not be passed until next year, which is too late.

"They have a 20-seat majority. Pass the legislation to scrap the cap before the end of December," he stated.

On the issue of drone disruption at European airports, including in Denmark, Mr O’Leary said drone flying over airports should be "shot down" or "electronically disabled".

He also said the tourism industry is facing "considerable challenges" at the moment and he said a removal of the passenger cap will help in addressing the issues.

Mr O’Leary also urged the Government not to cut the VAT rate for the food-led hospitality sector from 13.% to 9%, which he described as "a scam".

But he also said labour costs should not be passed onto the sector through an increase in the minimum wage, as recommended by the Low Pay Commission.