Tourexpi
Ryanair has called on the Austrian government to
abolish the country’s €12 aviation tax by 1 May, arguing that the measure is
undermining the competitiveness of Austrian airports and driving airlines to
relocate capacity to neighbouring countries. According to the airline, the
current cost structure is already leading to a decline in routes, aircraft
deployment and passenger traffic.
The carrier says several airlines have already reduced
or withdrawn operations in Austria in response to rising costs. Low-cost
carriers such as Wizz Air, Level and easyJet have scaled back their presence,
while Austria’s two largest operators, Austrian Airlines and Ryanair, have
reduced capacity and shifted aircraft to neighbouring markets including
Slovakia, Italy and Albania.
Competition from lower-cost markets intensifies
Ryanair argues that Austria is losing ground to nearby
countries that have introduced policies designed to stimulate aviation growth.
Slovakia, Albania and parts of Italy have recently reduced or abolished
aviation taxes, lowered air traffic control charges and implemented incentive
programmes that reduce airport costs for airlines expanding their networks.
According to the airline, these measures are
contributing to strong growth in neighbouring markets while Austrian airports
face declining competitiveness. Ryanair also points to Slovakia as an example
of a country experiencing strong traffic growth after abolishing aviation taxes
and reducing operating costs for airlines.
Growth plan linked to policy changes
The airline says it is prepared to invest in expanding
its operations in Austria if the cost environment improves. Ryanair has
outlined a potential investment plan worth around one billion US dollars, which
could increase passenger traffic in Austria by roughly 70 percent to around 12
million passengers over the next five years.
As part of that plan, the airline has proposed basing
up to ten Boeing 737 aircraft in Vienna and expanding operations at regional
airports across Austria. However, the company says these investments depend on
the abolition of the aviation tax, reductions in air traffic control fees and
the reintroduction of airport growth incentives previously offered at Vienna
Airport.
Airline calls for changes to aviation policy
“Today we call again on Chancellor Stocker and
Transport Minister Hanke to abandon their failed high tax policies. Austria has
become totally uncompetitive, and is losing aircraft, routes and traffic to
lower cost alternatives like Slovakia, Albania and Regional Italy,” said
Ryanair CEO Michael O’Leary.
“Even Sweden, the home of Greta Thunberg and flight
shaming, has now abolished its aviation tax. Meanwhile, Austria has the highest
aviation taxes, the highest ATC fees, and Vienna Airport has abandoned its
growth incentive schemes, making Austria and Vienna hopelessly uncompetitive.”
O’Leary argued that a combination of policy measures
would help restore competitiveness in the Austrian aviation market. These
include abolishing the €12 aviation tax, reducing air traffic control fees by
50 percent and reinstating airport incentive programmes designed to support
traffic growth.
Debate over aviation costs continues
Ryanair maintains that without such changes airlines
will continue shifting aircraft and routes to lower-cost markets in Central and
Southern Europe. The airline says Austria risks losing passenger traffic,
tourism demand and related employment unless its aviation cost structure
becomes more competitive with neighbouring countries.
The company has urged the Austrian government to
abolish the aviation tax from 1 May in order to encourage airlines to expand
operations and restore traffic growth in the country’s aviation sector.
Image Credit: © Ryanair
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