The minimum prices announced by Austria's Transport Minister Leonore Gewessler (Greens) in June 2020 are not off the table. The topic has been extremely quiet for some time, but a spokesman for the member of the government explains that the legal basis is currently being finalized.
Looking back: Around the time of the resumption of air traffic after the first COVID-19 lockdown, Austria's Transport Minister Leonore Gewessler announced that minimum prices for airline tickets would apply in the future . At the time, the government official mentioned a figure of approximately 40 euros one-way. While Austrian Airlines welcomed the plan, it drew sharp criticism from low-cost carriers, as well as from the then State Secretary for Aviation, Magnus Brunner (ÖVP).
Gewessler wanted to introduce minimum fares effective September 2020, but this has not yet happened. The coalition partner ÖVP has repeatedly expressed concerns regarding its compatibility with European law. With the exception of Austrian Airlines, which explicitly welcomes the plan , other airlines argue that a unilateral national approach is incompatible with applicable European law. For example, Wizz Air and Ryanair positioned themselves against minimum fares early on . The latter low-cost carrier maintains that the plan would protect Austrian Airlines, not the climate.
Apart from a few rumours, which included, among other things, that a special tax would have to be paid directly at an airport counter, Gewessler's lighthouse project "minimum prices for plane tickets" was very quiet. One could almost have had the impression that the topic had quietly and secretly petered out.
A spokesman for the Federal Minister told Aviation.Direct on request: "The BMK is currently finalizing the draft against the mentioned cheap tickets. In the future, the ticket price should be at least the same as the airport fees and charges per passenger in order to contribute to cost truth in air travel and curb artificially generated demand. This is a completely new measure in Europe, for which the factual and legal basis must be worked out particularly carefully".
However, the media officer did not give any further details or a possible timetable for the implementation of the controversial minimum prices. First of all, it should be a draft for the legal basis. This is then first dealt with in the cabinet and can then later find its way into the National Council.
Germany earns money with the Lufthansa rescue, Austria does not
The ÖVP-Green coalition government is currently facing criticism from the opposition for a completely different reason. In the wake of the coronavirus pandemic, Austrian Airlines received a subsidy of €150 million as well as loans . The government is accused of having spent taxpayers' money, unlike in Germany. AUA has already partially repaid the loan.
The Federal Republic was able to earn money with the billions in support from the parent company. This week, among other things, it was announced that the federal government had earned around 760 million euros. The sum results from interest on loans, but also from the proceeds from the sale of Lufthansa shares. You got on temporarily as a partner and have now sold all the shares and made money with it.
Austria did not secure any shares in the course of the rescue of Austrian Airlines, but instead granted a non-repayable grant of 150 million euros in addition to state-backed loans. In contrast to Germany, according to opposition politicians, a bad deal was made.