Irish budget airline Ryanair announced on Thursday major cuts to its services in Germany for the summer of 2025.
The airline will no longer fly to airports in Dortmund, Dresden and Leipzig. In Hamburg, the total number of summer flights will be reduced by 60% compared to the previous year. And, as already announced in August, there will also be 20% fewer flights from Berlin.
The company estimated that these cuts would amount to 1.8 million fewer passenger seats on its planes by 2022, 22 fewer routes and an overall 12% drop in capacity in Germany.
How did Ryanair explain the move?
Eddie Wilson, chief executive of Ryanair DAC, the group’s main and oldest airline, attributed the decision to costs he said were too high in Germany and to Berlin’s support for the “high-cost monopoly” enjoyed by flagship Lufthansa.
“Germany has only recovered 82% of its total air traffic from before COVID-19, making it by far the worst performer in the European air travel market,” Wilson said.
“As a result of these high government taxes and duties (the highest in Europe) as well as Lufthansa’s high-fare monopoly, German citizens and visitors now pay the highest airfares in Europe,” Wilson said.
Ryanair often criticizes flag carriers such as Lufthansa, which it noted in Thursday’s press release “were saved 6 billion euros” during the COVID pandemic by the German government, and the state aid that several of them received during the pandemic.
Ryanair said it did not expect any job losses at the company despite the reduced flight schedule, although it predicted knock-on effects for other workers and industries such as taxi drivers and the hospitality sector.
Ryanair had complained about the situation and threatened to vote with its feet to German Transport Minister Volker Wissing in August.
The airline drives a notoriously hard bargain over extra costs such as airport transit fees, and seeks to keep operating costs low relative to ticket prices, which is why its planes are often harder to find at the busiest European airports, which tend to charge more.
WIlson said Ryanair had presented a “7-year growth plan” to the German government in August but had heard nothing back from the federal or state governments.
“The refusal to promote growth at German airports is short-sighted because Ryanair is prepared to expand significantly in Germany,” Wilson said. “However, the increasing air travel tax, security and airport charges are leading to these capacities being moved to other EU countries.”
The air travel tax was increased by the German government in May, ranging from around €15 to €70 per flight. ticket, primarily depending on how long a flight is, with airlines typically passing the cost on to consumers.
Germany’s BDF says Ryanair’s reduction is no surprise
Germany’s BDF association of airlines has also complained that airport costs in the country are among the highest in Europe.
It responded on Thursday by saying Ryanair’s move was both predictable and potentially even the first of many such headlines.
“This was an advanced warning withdrawal and it shows the negative dynamics that Germany currently finds itself in as an air travel destination,” said BDF director Michael Engel.
The BDF said it expected more bad news of this type, especially regarding Hamburg. In this hub, the operator plans to raise its fees in 2025.
Another industry lobby group, ADV in Berlin, warned in a statement that Ryanair’s move showed how “we are no longer competitive.”
msh/wmr (AFP, dpa, Reuters)