Ryanair urges Austria to abolish €12 aviation tax to prevent traffic decline

International

Airline warns routes, aircraft and passenger growth will shift to lower-cost neighbouring markets without policy change

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The carrier says several airlines have already reduced or withdrawn operations in Austria in response to rising costs.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.