News today from Spanish press. Ryanair, which was supposed to pay a compensation to a passenger who was denied boarding, couldn’t pay the €2000 damages it was due. Ryanair’s Spanish account only has €67 to its name!
Upon reading the article of the Spanish newspaper El Pais, I cannot pretend I wasn’t a tad bewildered. The biggest European carrier, with over €570 millions of profits to its name, running out of cash? Sure, Ryanair is experiencing a bad time, but it couldn’t be that bad. It all sounded like a bad joke to me.
As the reading goes on though, one quickly realises what it’s all about. When the Spanish Tax office came to realise that Ryanair’s bank account, which was to centralise every cent received by Ryanair – remember that Spain is a federal government -, was desperately empty, they dug a little further. It seems that the money is sent back to Ireland. Therefore, there’s no way the plaintiff can receive it except if they send an international mandate to Dublin, a member of the Spanish Tax office said.This isn’t the first time the airline resorts to crafty mechanisms to avoid having its profits seized by the law. Indeed, an investigation from a French journalist had revealed that the carrier would send money received from airports to tax havens, such as the Isle of Man and Jersey.Report from
Ryanair use RED bags which are in the possession on Pilots who deliver the cash from all bases in Europe,to Stansted then on to Dublin Airport...Millions in CASH is delivered to the Ryanair head office and it would not surprise me to learn that the Bank of Ireland are moving the cash to offshore accounts..
More breaking news to follow regarding the RED bags next post....