Ryanair ultimatum to the new government

“The costs are too high at 12 euros per passenger. Austria has the third highest air traffic tax in Europe, only Germany and the Netherlands are more expensive,” argued the CEO of Europe’s largest low-cost airline.

O’Leary appealed to Vienna Airport to suspend the five percent fee increase planned for the beginning of 2025. Austria is already “more expensive and less competitive than other EU countries”. In the meantime, Vienna Airport is increasing fees again, “which will further damage traffic, tourism and jobs in Austria”.

If the next government does not reduce the tax burden, “Ryanair will not grow any further in Austria,” says O’ Leary, who, to put it kindly, likes to use striking language, putting the rod in the window of domestic politics.

Ryanair has ambitious expansion plans for Vienna. The number of passengers is set to rise from around seven million this year to ten million in two years. That is, assuming the tax is lifted. Of the 350 aircraft ordered, 20 additional aircraft are to be stationed in Vienna. O’Leary: “We can only do that if the government abolishes the tax and the airport reduces the fees. We have invested two billion euros in Austria.”

And in the event that “Austria increases taxes significantly, we will start to reduce them.” In Germany, Ryanair has already reduced capacity in Berlin by 20 percent. While most EU countries have already returned to pre-Corona levels, Germany and Austria are faltering. “Not only are the ticket prices from Austria to Germany crazy high, but also the prices if you fly anywhere from Germany. Germany is currently doing nothing to increase efficiency.”

Andreas Gruber, Ryanair’s Austrian boss, was very critical of Europe’s air traffic control (ATC). He spoke of an “unsustainable situation due to staff shortages and mismanagement. As a result, fares were increased by 21 percent.” Thousands of flights were canceled or delayed. He appealed to the EU Commission to take measures. For example, overflights should still be secured in the event of air traffic controllers’ strikes.

Boeing strike

The first strike at Boeing in 16 years is likely to lead to a production stoppage of two to three weeks, O’Leary estimates. Ryanair is a major customer of the US aircraft manufacturer. Boeing has assured that the strike will not affect the delivery of 737 MAX jets due by June 2025, “but we are not sure whether we should really believe that.” However, Ryanair has no choice but to work with Boeing after the industrial action to help the company catch up.

Aviation association calls for more funding for SAF

Not only Ryanair boss Michael O’Leary, but also airport board member Julian Jäger, new president of Aviation Industry Austria (AIA), has a number of demands on politicians.

“The industry has made a strong comeback after the pandemic, but aviation in Austria and the EU is coming under increasing pressure,” warned Jäger at the Aviation Symposium in Vienna.

“We do not need a mental reservation against aviation, but a political commitment to support the industry.” Jäger called for stronger promotion of alternative fuels (SAF).

OMV currently produces around 4,000 tons of SAF per year in Schwechat. By comparison, Vienna Airport needs around 800,000 tons of kerosene, calculates Nina Marczell, Head of Industrial Sales and Marketing at OMV. From 2025, airlines in the EU will have to add two percent sustainable fuel. The problem: SAF cannot currently be produced in large industrial quantities and, according to Marczell, is three to five times more expensive than conventional fuel.
By 2030, six percent will have to be added. OMV has decided to build a plant for SAF and renewable diesel; production could start at the end of 2027. The total cost is 750 million euros.