Irish airline Ryanair launched a scathing attack on the Austrian federal government under Chancellor Stocker and Transport Minister Hanke on Thursday. The low-cost carrier is demanding the immediate abolition of the €12 air passenger tax and a reduction in airport and air traffic control fees. Ryanair argues that these cost burdens are causing Austria to lose significant ground in international competition. While neighboring countries like Hungary, Slovakia, and Italy are cutting taxes, the Austrian market is stagnating. The airline predicts a decline in air traffic in Austria of at least 5 percent by 2026 if no political countermeasures are taken.
Andreas Gruber, a Ryanair spokesperson, emphasized that Austria is among the few EU countries that have not yet returned to pre-pandemic passenger levels. The main reasons for this are the 30 percent increase in fees at Vienna Airport since the Covid crisis, as well as the comparatively high ticket tax. In return for cost relief, Ryanair is offering an investment plan: If the fees are eliminated, the company is prepared to base ten new Boeing 737 aircraft in Vienna and increase passenger traffic by 70 percent to 12 million travelers annually. According to the airline, this would mean investments of one billion US dollars and thousands of new jobs in the tourism sector.
Additional market analyses support the claim of fierce competition for airport locations within Europe. Sweden recently halved its air passenger duty, and the German federal government under Chancellor Friedrich Merz has also taken steps to reduce the burden on the domestic aviation sector and strengthen the competitiveness of German airports against international hubs. Ryanair is using this European trend as leverage to put pressure on the Austrian Ministry of Transport. The company describes the annual tax revenue of around €160 million as negligible compared to the economic losses from lost tourism and a lack of regional development.
The Ministry of Transport under Minister Hanke has previously emphasized the need for a careful review of relief measures, a stance Ryanair criticizes as inaction. The airline is demanding action by December 31st to prevent the outflow of capacity to lower-cost markets. Industry experts point out that Ryanair's aggressive expansion strategy is heavily dependent on government cost structures and that the airline is known for quickly relocating its fleets to wherever operating fees are lowest. Austria is therefore faced with the decision of whether to prioritize the fiscal revenue generated by the levy or the promised growth in passenger numbers.
3 Comments