(Photo Key-Martin Needham)
LOW-COST GIANT Ryanair is to make sweeping cuts to its European network as it responds to increasing airport fees and new government taxes. Denmark is one of the countries affected, with the airline announcing it will close its two aircraft base at Billund from the end of March. Ryanair said that the move was due to the government’s decision to introduce a new “harmful aviation tax”, making Denmark “hopelessly uncompetitive compared to other EU countries”. The new tax, introduced in January, means passengers must pay a €4 departure charge. The closure will see the loss of 1.7 million seats and 32 routes from the city. Staff at the base will be offered positions at other airports within the Ryanair Group network. Ryanair said that it will look to transfer operations to other countries such as Sweden, Hungary, and Italian regions, where aviation taxes are being abolished to stimulate traffic recovery and growth. The airline will also remove an aircraft from its Rome/Fiumicino base, cutting its investment at the facility by €100m. Due to rising costs and flight restrictions, it will also reduce its expansion at nearby Rome/Ciampino. The Dublin-based carrier said airport costs were set to increase by 15% at Fiumicino and 44% at Ciampino. “These restrictive policies are damaging connectivity, tourism and jobs in Italy, particularly in Rome, where enhanced air connectivity is needed to support inbound tourism during the Jubilee year,” the airline commented.
In Austria, Ryanair boss Michael O’Leary warned that increased airport fees and the country’s €12 air traffic tax could limit its expansion in the country. Costs at the capital’s Vienna International Airport have also risen, leading Ryanair to focus on smaller airports such as Linz and Salzburg. Across the border in Germany, six routes will be cut from Berlin/ Brandenburg this summer, again due to higher operational costs. The affected routes include Brussels, Kaunas, Krakow, Luxembourg and Riga. Additionally, Ryanair will reduce the number of aircraft based in Berlin from nine to seven.