This must make Scott Kirby very happy!
When two of Europe’s largest low-cost carriers announce they’re cutting back in the same city, it’s not just a scheduling tweak — it’s a shot across the bow.
Ryanair is pulling three based aircraft out of Vienna this winter and cutting three routes (Billund, Santander, Tallinn). They blame “sky-high airport fees” and Austria’s €12 per-passenger Air Transport Levy (Ryanair Corporate Newsroom).
Wizz Air is going even further: closing its entire Vienna base by March 2026, after a gradual withdrawal that starts this October. The airline calls the rising airport charges and ground-handling fees “incompatible with its ultra-low-cost model” (Reuters).
Sound familiar? It should. EasyJet scaled back its Vienna footprint years ago despite basing a substantial part of its fleet in Austria. IAG’s LEVEL never grew beyond a token presence. The pattern is hard to ignore.
Is This Really About Taxes?
Sure, Austria’s aviation tax is a blunt instrument — €12 per passenger is no small amount in a world where Ryanair’s average fare hovers around €50. But is this just about costs, or are we watching a strategic game of chicken?
Ryanair isn’t just leaving. They’re bargaining in public, dangling a carrot (and carrying a very large bully club) :
“Reduce taxes, fees and access costs and we will expand in Austria – adding up to 10 more aircraft and 12m passengers by 2030.”
(Ryanair Press Statement)
Translation: cut our costs or watch us redeploy capacity elsewhere.
Vienna: A Victim of Its Own Success?
Vienna is a strong O&D market with a hub carrier (Austrian Airlines), plenty of business demand, and a growing tourist base. But ULCCs thrive on razor-thin margins. Add higher airport charges, inflation-pumped ground-handling costs, and environmental levies designed to nudge passengers onto trains — and the economics break down.
Wizz Air has already been shifting its growth focus to Central/Eastern Europe, where airports offer incentives and cost per passenger is lower (EX-YU Aviation).
Winners & Losers
Losers:
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Consumers who enjoyed cheap flights and multiple options.
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Vienna’s tourism sector, which risks losing point-to-point connectivity.
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Vienna Airport’s growth story.
Winners:
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Austrian Airlines (and Lufthansa Group) which may gain back market share.
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Neighbouring airports like Bratislava or Budapest, which could absorb displaced capacity.
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Other European states — if Ryanair & Wizz choose to redeploy capacity there.
What Comes Next
We’ve seen this movie before: capacity cuts, tough talk, and then either policy concessions or a permanent reset of the market. The Austrian government must now choose:
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Stay the course on environmental levies and high fees, and accept reduced connectivity.
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Or renegotiate fees/taxes to lure ULCC capacity back, risking criticism from green groups.
Either way, Vienna is at an inflection point. If it misplays this moment, it could lose not just Ryanair and Wizz Air, but the competitive tension that keeps fares low.
My Take
This isn’t just about Vienna — it’s a test case for Europe. As governments layer on aviation taxes and green policies, ULCCs will keep walking when margins go red. The question is whether Vienna is the canary in the coal mine — or just the first domino. We have seen Ryanair wield its stick in Berlin, Spain and Bordeaux.
If Austria blinks and cuts fees, Vienna may roar back. If not, expect Bratislava to have its moment in the sun.
Over to You
What do you think? Is this smart airline strategy, or regulatory overreach pushing airlines out? Will we see new players step in — or will Vienna quietly slide back to being a legacy-carrier stronghold?
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