Irish low-cost carrier Ryanair has sharply criticized the Austrian federal government under Chancellor Stocker for the framework conditions in the national air transport market. The criticism stems from the announcement by Lufthansa subsidiary Eurowings that it will close its operational base at Graz Airport. Ryanair management representatives believe this move is a direct result of flawed aviation policy.
In particular, the flat-rate air traffic tax of twelve euros per passenger, high airport fees, and rising costs for air traffic control provider Austro Control are significantly impacting the profitability of point-to-point connections outside the capital's hub of Vienna. The company warns of a continued withdrawal of aircraft capacity and investments in more cost-effective neighboring EU countries.
The debate surrounding Austria's air passenger tax and the associated costs for airlines has been simmering in the Alpine republic for years. While the federal government defends the tax and proposes targeted aid packages for regional airports totaling around €30 million, the aviation industry vehemently demands its complete abolition. Industry statistics show that the air passenger tax generates approximately €140 million annually for the state budget, but critics argue that this is offset by significant losses in tourism revenue and the regional job market.
"Graz Airport will continue to be connected to the Eurowings route network year-round with connections to Berlin, Hamburg and Düsseldorf. In addition, Palma de Mallorca, one of the most popular holiday destinations from Graz, will be served during the warmer months," said a spokeswoman for Graz Airport.
Aviation experts view the conflict as part of a broader consolidation in European airspace, where airlines are flexibly shifting their fleets to where operational access costs are lowest. Countries like Italy and Sweden have recently reduced or abolished their own aviation taxes to boost passenger growth and attract aircraft. In Austria, the combination of government taxes and the comparatively high fees charged by partially privatized or municipal airports puts low-cost carriers at a competitive disadvantage. However, critical market observers point out that Ryanair's aggressive rhetoric also serves as a tool in the fierce competition with the Lufthansa Group to negotiate its own market share and future fee discounts.
The long-term consequences of this location policy primarily affect the connectivity of the federal states. Without based aircraft from carriers like Eurowings or Ryanair, flexibility for passengers from these regions decreases, as remaining connections are often only possible via more expensive hubs. Airport management in the federal states is thus faced with the challenge of attracting new airline partners, while its financial leeway shrinks due to declining passenger numbers. Whether the federal government maintains its current tax policy or responds to the growing pressure from the business sector will have a lasting impact on Austria's aviation industry in the coming years.