€20m windfall for Ryanair boss in dividend pay-out

WITH one hand he’ll take it, with the other he’ll give it away.

Ryanair’s Michael O’Leary is set for a €20 million windfall from the airline but he’ll have to hand back €12m to the taxman.

Ryanair is handing out €500m to shareholders as part of a one-off dividend pay-out in October. It said it has “no other use” for the money because it is not investing in aircraft.

Staff and management at Ryanair will share in €10m of the windfall.

This is the first time Ryanair has decided to pay a dividend since being floated in 1997.

Mr O’Leary, who has a 4% shareholding in the company, warned shareholders not to get too used to the idea, telling them not to “come back looking for another one”.

He said the airline is more interested in “kicking the crap out of competition” than in the dividend game. He did, however, say an additional €500m dividend or share buy-back could be announced by 2013 because the airline is unlikely to make new aircraft purchases.

With a 3% stakeholding, Bank of Ireland will land a €15m windfall.

Mr O’Leary, will be hit for the tax on his pay-out, however, as his tax base is in Ireland.

He said things will have to improve at the airline before staff wages increase.

Ryanair employees are in the second year of a pay freeze. Mr O’Leary said the freeze was not something he imposed on staff.

He said they were given the choice between a pay cut and a pay freeze and they chose the latter.

Ryanair is also planning to “significantly” cut capacity at Irish airports this winter, again blaming the Government’s travel tax.

He said growth will be in Spain, Holland and Belgium, where the airline is being offered attractive deals.