Ryanair boss O’Leary gives the government an ultimatum: "Sleepy Stocker, we can’t wait"

Michael O’Leary, the provocative boss of Europe’s largest low-cost airline Ryanair, is increasing the pressure on the Austrian government. He calls for the abolition of the aviation tax of 12 euros per passenger. The airline can no longer wait until Finance Minister Markus Marterbauer’s budget speech on June 10th.

“It’s too late for us to fix the winter flight schedule. We’ve already lost half a year in which nothing happened,” O’Leary said in an interview with KURIER, referring to the last appointments with ÖVP Chancellor Christian Stocker and SPÖ Transport Minister Peter Hanke. Ryanair’s flight program will be finalized in May.

O’Leary wants the tax to be abolished, “and not a tinkering with a few percentage points. We call on Stocker and Hanke to abandon their failed high-tax policy.” “Something absolutely has to be done to make Austria competitive”.

The airline boss once again described the politicians to journalists as “sleepy stockers” and “hopeless Hanke”.

Growth plan

If the tax falls, O’Leary promises strong growth at domestic airports, especially in Vienna. The plan he presented to the government guarantees investments of one billion US dollars by 2030, traffic growth of 70 percent to 12 million passengers in total, 40 new routes and 300 additional jobs. On top of that, the boss of Europe’s largest airline (calculated in terms of passengers) is promising the struggling regional airports a growth of 150 percent to one million passengers.

“Ryanair can and wants to bring traffic growth, but only if the framework conditions are right.” Ryanair has ordered 300 MAX-10s aircraft by March 2034 and expects passenger numbers to grow from 208 to 300 million passengers.
If the tax stays, O’Leary threatens further cuts in Vienna. The number of aircraft stationed in Vienna was recently reduced from 19 to 14, and the destinations were reduced to 73 routes.

The Irish airline boss points to the neighboring Bratislava airport, Slovakia has canceled aviation tax. While the number of passengers at Vienna Airport fell by ten percent in April, Bratislava increased by 170 percent, calculates Andreas Gruber, head of the company’s subsidiary Laudamotion. In addition to Slovakia, Hungary, Sweden, Albania and Italy have abolished aviation tax.

The AUA has also reduced its capacity and the federal states have already pushed for the tax to be abolished.

However, Ryanair is also calling on Vienna Airport to reduce fees, which have increased by 30 percent since the pandemic. “Cut fees instead of constantly building shiny new office blocks,” said O’Leary. Gruber advocates renewed growth incentives for fees, as in previous years.

Nothing will come of this, as the AUA, which has hardly any growth, is resisting it as a home carrier, as we hear in aviation circles.

Air traffic control also has to reduce its fees, which were increased by 60 percent after Covid.

Ryanair flies to 250 airports in Europe. For O’Leary, however, Austria is not even the worst economic location – but still Germany.

Fuel securedThe high kerosene prices are not currently causing O’Leary any major concerns, at least not for the summer peak season. Ryanair has hedged (hedged) 80 percent of the fuel at $67 until March 2027; the rest will be purchased at the market price, which is currently $155 to $160 per barrel (159 liters).

It is currently not possible to make a forecast about ticket prices; the uncertainties caused by the Iran war are too great. Before the war, Ryanair calculated a price increase of four to five percent for the high season.

China Eastern Airlines landed in Vienna

Since Monday, China Eastern Airlines has been connecting Vienna directly with the Chinese city of Xi’an.

The historic imperial city is one of the most important cultural and economic centers in China and is best known for the Terracotta Army. The destination is flown three times a week all year round with an Airbus A330-200.