Ryanair strongly criticized a newly imposed aviation tax on a popular holiday destination and called for its removal to enhance tourist influx.
Austria, known for its stunning landscapes of snow-capped mountains, serene lakes, lush forests, and charming villages, including popular spots like Vienna, Salzburg, and Hallstatt, is facing backlash over a €12 (£10.39) aviation tax as per Ryanair.
The budget airline raised concerns that the aviation tax could have detrimental effects on airlines like Wizz Air, Level, and easyJet, potentially leading to reduced travel to Austria. Despite no official statements from the mentioned airlines, Ryanair highlighted that major Austrian airlines, AUA and Ryanair, have already reduced operations and redirected services to more cost-effective neighboring countries such as Albania, Italy, and Slovakia.
In response, Ryanair urged the Austrian government to scrap the €12 tax by May 1 to prevent a decline in airline services, routes, and airport traffic. The airline emphasized that the tax has made Austria less competitive compared to countries like Albania, Italy, and Slovakia, which have eliminated aviation taxes and introduced measures to lower airport costs for airlines.
Ryanair demanded the removal of the aviation tax, threatening to withhold investments in Austria unless the tax is revoked. The airline disclosed plans for a $1 billion (£740 million) growth initiative, including the potential deployment of 10 new B737 aircraft in Vienna, projecting a 70% increase in airport traffic to 12 million passengers in the next five years.
While Ryanair contests the aviation tax, the aviation industry has historically benefited from tax breaks, with no fuel duty on jet fuel and no VAT applied. This has contributed to increased passenger numbers and a surge in CO2 emissions within the industry, as highlighted by the Aviation Environment Federation.
In a recent statement, Ryanair’s CEO, Michael O’Leary, criticized Austria’s high tax policies, urging authorities to reduce ATC fees and reinstate growth incentive schemes at Vienna Airport to ensure competitiveness with neighboring countries like Slovakia, Albania, and Italy. The airline emphasized the need for prompt action to prevent further loss of airline services, routes, and jobs due to Austria’s tax policy.
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