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Nov 10, 2025

Ryanair threatens to slash Vienna flights unless Austria drops €12 aviation tax

Ryanair threatens to slash Vienna flights unless Austria drops €12 aviation tax
Low-cost carrier Ryanair has reignited its long-running battle with the Austrian Government over the country’s air-passenger-duty, warning that it will further scale back operations at Vienna International Airport (VIE) unless the €12 tax on European departures is abolished.

Speaking to reporters in Dublin on 10 November 2025, Chief Executive Michael O’Leary said the levy – Europe’s third-highest short-haul charge – “makes Vienna the least competitive base in Central Europe” and called Chancellor Christian Stocker “lazy” for refusing to engage with the airline’s €1 billion investment proposal. Ryanair claims the tax, coupled with what it views as high airport fees at VIE, already prompted it to cut one aircraft and 150 weekly flights this winter, and it is prepared to redeploy another two aircraft to nearby Bratislava or Budapest where charges are lower.

Ryanair threatens to slash Vienna flights unless Austria drops €12 aviation tax


The Irish carrier argues that Austria’s air-passenger-tax, introduced in 2010 and raised to €12 for intra-European sectors in 2020, depresses demand by up to 15 % and diverts price-sensitive traffic to airports just over the border. O’Leary noted that rival Wizz Air has announced plans to close its Vienna base in 2026 for similar reasons, which would further reduce connectivity for business travellers and inbound tourists.

Austria’s Infrastructure Ministry responded that the tax brings in roughly €170 million a year and is aligned with the country’s climate-policy goals. Officials added that any changes would have to be agreed in the 2026 budget cycle and rejected O’Leary’s allegations of government “inaction”. Industry analysts caution that Vienna risks losing its position as a Central European low-cost hub if both Ryanair and Wizz Air downsize, noting that neighbouring Bratislava Airport has spare capacity and is actively courting carriers.

For corporate travel managers the dispute raises two immediate issues: potential schedule volatility on Vienna-based routes operated by Ryanair and higher ticket prices if capacity shrinks. Companies are advised to monitor GDS inventory changes closely, revisit O&D routings through Bratislava or Munich, and factor possible ground-transport add-ons into door-to-door journey times. Longer-term, multinationals with Austrian operations may wish to lobby jointly for a more predictable, multi-year aviation-tax framework to preserve air links that are critical for inward investment and export sales.
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