Ryanair is sharply cutting back its flying plans to Spain, removing about 16 per cent of its winter capacity to one of Europe’s busiest tourist markets in a dispute over higher airport fees.
The decision by Europe’s biggest low-cost carrier will reduce flights to winter getaways such as Tenerife, in the Canary Islands, as well as mid size cities such as Zaragoza, Vigo and Valladolid. It follows a 6.5 per cent increase in airport taxes by Spain’s public airport operator, Aena.
“Aena and the Spanish government have the obligation of explaining to the regions its mid term strategy given that its bad management is directly contributing to the loss of local jobs, connectivity and investment,” Eddie Wilson, chief executive officer of Ryanair’s main airline unit, said in a statement.
The reductions, amounting to 2 million seats on an annual basis, put pressure on Spanish authorities to reconsider, following a playbook Ryanair has elsewhere in Europe such as France. The airline for years has pitted airports against each other, punishing those that raise taxes and rewarding lower fees to protect its low-cost, no-frills model.
Why are some independent Irish breweries turning off their taps and closing?
In July, Ryanair Group chief executive Michael O’Leary cheered a decision by Sweden to reverse a tax on air travel, rewarding the Scandinavian country for its turn away from flight-shaming by adding two aircraft to its local fleet and initiate 10 direct routes.
Ryanair has targeted the Canary Islands with a 10 per cent drop – an important winter getaway because of its year-round good weather – saying it will halt operations in Tenerife North. It will lower capacity at Spanish regional airports, pulling out of Vigo, on the Atlantic coast, while Jerez and Valladolid will remain closed. The company will also substantially reduce capacity in Santander, Zaragoza and Asturias.
For its winter schedule, the capacity cuts total 1 million seats, Ryanair said. Flights will be diverted to Italy, Morocco, Croatia and Albania.
In picking a fight with Spain, Ryanair is taking on a market that will attract nearly 100 million people this year – one of the highest in Europe – and where winter flight capacity is at a record high.
The airport operator said that the increase totals €0.68 per passenger – an amount that Aena says won’t stop a customer from buying a ticket, and maintains that other airlines will take Ryanair’s place.
“Aena airport taxes are among the most competitive in the European context,” said Maurici Lucena, chairman of the public operator. He said the airline is cancelling routes not because taxes are higher, but because it’s “moving its planes to airports where it can set higher ticket prices.” – Bloomberg
