Ryanair Considers Expanding German Operations, Hinging on Reduced Taxes and Fees
Ryanair’s CEO, Eddie Wilson, has sent a growth plan to the German government, outlining the low-cost carrier’s intention to more than double its traffic in the country, provided that state taxes and airport fees decrease. Wilson told the Frankfurter Allgemeine Zeitung that the airline is prepared to increase the number of aircraft stationed in Germany to 60, with the potential to establish four new bases, creating over 1,000 new jobs in the process.
The airline is echoing a demand also made by German airlines, as the aviation industry has yet to fully recover from the COVID-19 pandemic. Ryanair is linking the implementation of its expansion plans in Germany to the reduction of taxes and fees. “The recent increase in air traffic tax by around three euros per passenger must be immediately reversed and the tax abolished later” Wilson said. He also called for a halving of security control fees at airports and a reduction in fees for air traffic controllers.
Wilson emphasized that making German airports more competitive would be a win-win for the country, stating, “Make your airports competitive and we’ll solve the problem of missing passengers for you.” Ryanair would, in effect, be building a network of German infrastructure “for free” as each of its ordered aircraft, with a list price of over $100 million, would be a significant investment.
The CEO disputed the notion that lower taxes are necessary for Ryanair to maintain its low-ticket prices. “The problem is not our low prices” he said, noting that the average ticket price has risen to 46 euros, allowing the airline to reach over 200 million passengers and generate significant profits. “The problem is that Germany is not competitive. Other airlines have also reduced their services and the post-Corona recovery is weaker in Germany than in the rest of Europe.