Ryanair Pulls Five Planes from Vienna, Austria Amidst Sky-High Taxes and Fees, Shifting Focus to Cheaper EU Markets: Know More

Ryanair, the Irish budget airline, has announced plans to remove five aircraft from its base at Vienna-Schwechat Airport by the summer of 2026, citing high air traffic taxes and excessive airport fees as key factors making the city’s capital less competitive compared to other European hubs. This decision comes after the airline had already planned to relocate three of its aircraft for the winter 2025 season. The move is a direct response to what Ryanair sees as Austria’s €12 air traffic tax, which it believes is hindering the growth of both aviation and tourism in the country.

Ryanair’s Response to Austria’s High Air Traffic Tax

The decision to scale back operations in Vienna comes after months of ongoing tension between Ryanair and Austrian officials regarding the country’s air traffic levy. Ryanair has long criticized Austria’s €12 per-passenger tax, which the airline argues is detrimental to the growth of the aviation industry and makes Vienna less appealing as a travel hub. In a statement, the company expressed frustration with the Austrian government’s refusal to abolish the tax, saying it has resulted in reduced profitability for airlines operating in the region.

Ryanair also raised concerns over high airport fees, which it claims make it harder for the city to compete with other European hubs that offer more affordable travel conditions. The airline emphasized that the withdrawal of five planes from Vienna would not result in a reduction of overall capacity in Europe. Instead, the planes will be relocated to other EU markets such as Italy, Hungary, and Slovakia, where governments are scrapping similar taxes to encourage tourism growth.

Impact on Ryanair’s Growth Plan in Austria

Ryanair had previously outlined an ambitious $1 billion growth plan aimed at increasing annual passenger traffic in Austria to around 12 million, a 70 percent increase, by introducing Next-Gen Boeing 8-200 aircraft by 2030. The airline’s proposal included the introduction of ten new aircraft to expand its presence at Vienna-Schwechat. However, this growth plan was effectively rejected by Austrian policymakers, leading to Ryanair’s decision to reduce its aircraft fleet in Vienna.

Ryanair CEO Michael O’Leary had personally urged the Austrian government to eliminate the air traffic tax entirely, highlighting how the current policies were limiting the airline’s ability to expand in the region. He accused the government of failing to recognize the potential benefits that the proposed expansion could have brought to the Austrian economy, especially in terms of tourism and air connectivity.

Austrian Government’s Response to the Dispute

Austrian Infrastructure Minister Peter Hanke responded to Ryanair’s concerns by dismissing calls for the full abolition of the air traffic tax. Hanke maintained that the government could not abolish the tax, citing the budgetary situation. However, he assured that discussions with aviation stakeholders were ongoing to find a balanced solution that would help safeguard Austria’s air connectivity. He also mentioned that airlines’ decisions regarding route adjustments and capacity reductions are within their rights and should be viewed as economic self-determination.

Vienna Airport, which has supported Ryanair’s stance on reducing the air traffic tax, reiterated the importance of making such changes to maintain Austria’s competitiveness in the European aviation market. The airport has expressed concern that without changes to the current tax structure, Austria could continue to lose ground to neighboring countries that have already taken steps to cut similar taxes and boost their tourism industries.

Political Reactions and Criticism

The ongoing tax dispute has also drawn political attention in Austria, with the opposition Freedom Party (FPÖ) accusing the government of sabotaging the country’s economy and tourism industry. FPÖ officials have strongly criticized the air traffic tax and called for its immediate and full repeal, describing it as a “location-hostile” measure that undermines Austria’s attractiveness as a travel destination.

Despite the political divisions on the issue, there has been no clear consensus on how to address the tax concerns. Talks between industry representatives, including Federal Chancellor Christian Stocker and Peter Hanke, ended without any concrete agreement on the matter. Ryanair’s decision to relocate aircraft from Vienna-Schwechat serves as a clear indication of the airline’s frustration and signals the airline’s intention to shift its focus to more favorable markets within the EU.

The Future of Ryanair in Austria

Ryanair currently operates 19 aircraft from Vienna-Schwechat, but with the planned reduction of five aircraft by next summer, the airline has warned that further cuts may follow if the Austrian government continues to ignore its concerns. Ryanair’s Michael O’Leary has warned that inaction on the government’s part could lead to higher airfares for Austrian passengers and visitors, as fewer flights would mean reduced competition and higher ticket prices.

The airline remains committed to its European expansion strategy, but the increasing number of obstacles in Austria, including high taxes and fees, is forcing Ryanair to reconsider its operations in the country. As Ryanair moves its aircraft to countries that offer more favorable tax and fee structures, Austria may need to reassess its aviation policies to prevent further reductions in capacity and air connectivity.

Conclusion

Ryanair’s decision to withdraw five aircraft from its base at Vienna-Schwechat Airport by the summer of 2026 underscores the ongoing tensions between the low-cost airline and the Austrian government. The airline’s frustration with Austria’s €12 air traffic tax and high airport charges highlights the challenges faced by European carriers operating in markets with less favorable policies. As Ryanair redirects its resources to countries that have eliminated similar taxes, Austria may need to reconsider its approach to air traffic and airport fees if it hopes to maintain its position as a competitive hub for international travel.

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