According to Ryanair CEO Michael O'Leary, the presence at Vienna-Schwechat Airport has not led to any losses. However, no profit was made at Austria's largest airport.
In 2020, the situation sounded quite different, as arguments surrounding the proposed new collective bargaining agreement for Laudamotion , which was ultimately never finalized, claimed that the Vienna-based subsidiary had incurred significant losses. Ryanair CEO O'Leary now likely views these losses as calculated start-up costs offset by revenues from other bases, thus justifying his strategy.
The manager interprets the withdrawal of competitors like Easyjet and the downsizing of Wizz Air's Vienna base as evidence that these rivals have lost their appetite for fierce competition. He also notes that IAG has driven its low-cost subsidiary Level Europe into insolvency.
Michael O'Leary assumes that the tough competition in Vienna will relax and that it will result in a match between Austrian Airlines and Ryanair. Within the next two to three years, they want to fly with around 40 aircraft stationed in Vienna and achieve a market share of around 40 percent. It is currently around 17 percent and is aiming for between 2022 and 20 percent for the 25 summer flight schedule. The reductions at the competitor Wizz Air would literally play into the hands of the Irish group.
The Vienna-Schwechat airport is expected to become profitable as early as the summer 2022 flight schedule, and a significant increase in profitability is anticipated for subsequent years. Wizz Air's Michael O'Leary has once again predicted that, in his view, the current reduction in services , which primarily affects holiday routes, could be the beginning of a withdrawal from Vienna-Schwechat.
"Wizz Air lands with Lufthansa, Easyjet with Air France-KLM"
The number of employees at Austria's largest airport is set to increase to 600. Currently, the temporary staffing agency Crewlink is looking for 50 new flight attendants for Ryanair subsidiary Lauda Europe.
Michael O'Leary emphasized at an event in Vienna that the lion's share of the fuel requirement was secured until March 2023 with the help of fuel hedging transactions. You pay around 65 US dollars per unit, which is well below the current market price. He wants to pass this cost advantage on to passengers and predicts that competitors such as Air France-KLM and the Lufthansa Group will soon be increasing their kerosene surcharges. O'Leary accuses the competitor Wizz Air - without giving details - of not having operated sufficient fuel hedging.
In general, the Ryanair boss considers the airlines Easyjet and Wizz Air to be takeover candidates. He suspects that the orange low-cost airline could be swallowed up by Air France-KLM and Wizz Air thinks O'Leary is interesting for Lufthansa. Both groups have problems in the low-cost segment that could be solved with the help of acquisitions.